Lifson Re Ltd., a new special purpose insurer registered in Bermuda and licensed by the Bermuda Monetary Authority (BMA), has been launched by W. R. Berkley Corporation.
The new sidecar-type structure has been capitalised with more than $250 million of equity from a small group of global investors with long-term investment horizons, including a minority participation by W. R. Berkley.
Lifson Re will participate alongside traditional reinsurance firms in a broad portfolio of property and casualty reinsurance treaties ceded by W. R. Berkley’s subsidiaries on a fully collateralised basis, beginning January 1st, 2021.
The new sidecar-type structure enables W. R. Berkley to bring more capital into its underwriting operation from third-party investors. Furthermore, the assets of Lifson Re will be managed by an affiliate of W. R. Berkley.
President and Chief Executive Officer (CEO) of W. R. Berkley, W. Robert Berkley, Jr., commented: “The creation of Lifson Re is part of an important strategic initiative to efficiently manage our risk and capital. This venture is a significant step forward in allowing us to partner with knowledgeable third-party capital that has extensive experience in the insurance industry. Over the past several years, we have considered a variety of opportunities to partner with alternative capital sources.
“Lifson Re is a natural fit with our business and complements our strong, long-standing relationships with traditional reinsurance partners. Through a unique long-term arrangement, Berkley will be the sole source of risk ceded to Lifson Re, providing Lifson Re’s investors with access to an attractive, specialized and diverse book of insurance risk.”
