16 March 2020ILS

Canopius acquires Multi-Strat Holdings to build up ILS offering in Bermuda

Canopius Group, has taken a majority stake in Multi-Strat Holdings, the Bermuda-based reinsurance group that writes both prospective and retrospective casualty reinsurance sourced through select reinsurance intermediaries.

MultiStrat, which will continue to operate autonomously and will retain its brand, works with its investment broker dealer partners to place casualty Insurance Linked Security (ILS) transactions with alternative investors. Its reinsurance and capital advisory teams operate through both its Bermuda based Class 3A segregated accounts company and insurance agency, and Garden Insurance, its Vermont protected cell company.

Canopius, the global specialty re/insurer which is domiciled in Jersey and operates in Bermuda, UK, US, Netherlands, Singapore and Australia, writes in excess of $2 billion premium annually. It transacts business through three principal underwriting platforms: Canopius Reinsurance, its Bermudian reinsurance carrier, as well as Canopius Managing Agents, which manages Lloyd’s syndicates 4444 and 1861, and Canopius US Insurance, a Chicago-based excess and surplus lines company.

Michael Watson, chairman and CEO of Canopius, highlighted MultiStrat’s strong track record in the casualty ILS market. “The addition of MultiStrat will be highly complementary to our existing ILS operations based in Bermuda. We’re confident that with active support from Canopius, MultiStrat can broaden its capabilities and grow profitably in the future,” he said.

Bob Forness, CEO of MultiStrat, said the deal will enable the company to scale up its products more rapidly.

“Chemistry is important in finding the right fit and I’ve had the fortunate opportunity to work with Michael Watson on two prior occasions,” he added. “Casualty ILS capacity works best when paired with traditional capacity, blending the strengths of both to deliver cost effective coverage for reinsureds and attractive returns for investors.”