Bermuda-based reinsurance company, PartnerRe Ltd., has established a new retrocession and specialty reinsurance vehicle called Laplace-C, which has secured an investment from Olympus Partners.
The backing sees Stamford, Conn.-based private equity firm, Olympus Partners, look to take advantage of favourable reinsurance market conditions in both short-tail specialty and retro insurance markets.
Founded in 1988, the PE firm manages funds in excess of $8.5 billion mainly on behalf of corporate pension funds, endowment funds, and state-sponsored retirement programs.
Matt Boyd of Olympus, commented: “We have been actively looking at opportunities to invest in the current favorable reinsurance cycle and believe the newly created Laplace-C vehicle represents a differentiated value proposition combining superior risk-adjusted returns with established market access to a broadly diversified book of business.”
The Olympus team included Boyd, Paul Rubin, Connor Wood, and Sid Ahuja. While Olympus was represented by Rajab Abbassi from Kirkland & Ellis LLP.
“We are excited to partner with PartnerRe, one of the leading reinsurers in the world with a long history of exceptional underwriting returns,” added Boyd.
In August of last year, PartnerRe entered into a €750 million reinsurance cooperation agreement with French insurer Covéa. Under this arrangement, Covéa is expected to inject funds into PartnerRe’s special purpose insurance vehicles.