Armour raises funds to create new reinsurance company

P&C run-off insurance business Armour has announced that it has raised up to $500 million in equity commitments to fund the formation of a new reinsurance group, Armour Group.

The fund raising was carried out in partnership with an investor group led by Aquiline Capital Partners, a New York-based private equity firm investing in financial services and financial technology.

Armour Group will co-invest in global P&C run-off transactions in parallel with the group’s affiliates. The investment will also provide growth capital for the Armour team and platform to execute on the expanding run-off market opportunity.

As part of the transaction, the former Armour holding company will rename itself Trebuchet Holdings and transfer the Armour brand name to the new group. Trebuchet Holdings will also contribute its existing P&C run-off platform to the newly established holding company, including the firm’s claims management operation (Armour Risk) and, subject to certain approvals, the group’s affiliate ILS Investment Management, which will continue its existing business.

“We are excited to have Aquiline as a partner as we enter our next phase of growth,” said Armour founder and chief executive officer Brad Huntington. “Given Aquiline’s deep insurance industry experience, we believe they are an ideal partner to help us grow the team and scale our operation.”

“Aquiline’s investment in Armour reflects the growing demand for run-off as an option for insurance companies that are looking to solve deteriorating reserve positions and optimise their capital,” said Jeff Greenberg, chairman and chief executive officer of Aquiline. “We are excited to partner with the highly-experienced team at Armour and believe that their ILS management capabilities provide a strong competitive differentiator. The formation of our permanent capital vehicle provides the team with the full toolkit to capitalise on the market opportunity.”