15 March 2021ILS

ERS to build Bermuda-based reinsurance and ILS platform

ERS, the UK-based specialist insurer, is raising $350 million in capital via Abry Partners and Aquiline that will finance its expansion into specialty reinsurance and a new Bermuda-based specialty re/insurance vehicle and an ILS manager.

ERS’ plans remain subject to Lloyd’s business plan and Bermuda Monetary Authority approval.

Meanwhile Kevin Kelley, an executive advisor at Acqualine and former vice chairman of global risk solutions at Liberty Mutual Insurance, is joining ERS as non-executive chairman.

Peter Bilsby, chief executive officer of ERS, said: “Over the past months, we have been able to add Syndicate 1856 to the portfolio and attract some of the leading talent in the industry to drive growth. This capital raise will provide further support for our transition into a specialty re/insurer, driven by an experienced management team, strong underwriting talent and the deployment of technology to enhance the client and broker experience.”

Brent Stone, partner at Abry, said ERS can take advantage of the highly attractive market outlook. “This is a unique opportunity to support a great company in its next chapter of growth and development and we are excited to make ERS our first investment at the world’s leading insurance market, Lloyd’s,” he said.

TigerRisk Capital Markets and Advisory and Deloitte Corporate Finance are acting as exclusive financial advisors to ERS and Abry respectively on the capital raise. Norton Rose Fulbright and Kirkland and Ellis are acting as legal advisors to ERS and Abry, respectively.