AXA XL targets alternative capital via purchase

20-11-2018

AXA XL's reinsurance operation has announced that it has bought up all of the third party ownership interests in its majority-owned asset management affiliate, New Ocean Capital Management.

According to the company New Ocean is now a wholly-owned subsidiary within AXA XL's alternative capital business, under the leadership of Daniel Brookman, AXA XL's Head of alternative capital.  Chris McKeown, who was the founding chief executive officer (CEO) of New Ocean, will continue to serve as an advisor to AXA XL's alternative capital business for a transitionary period, as well as continue to serve as a director of certain New Ocean managed funds.

“Alternative capital is a core component of our strategy, as we seek to create strategic partnerships matching the risks we initiate with third party capital alongside our own,” said Greg Hendrick, CEO of AXA XL. “Our decision to acquire the outstanding shares of New Ocean demonstrates our strategic commitment to the alternative capital space and represents the latest step towards becoming the partner of choice for investors seeking to access (re)insurance risk globally.”

Hendrick added: “We'd especially like to thank Chris whose dedication and 30 years of experience helped launch and grow New Ocean and bring it to this point where we can start our next chapter in alternative capital management.”

According to Charles Cooper, head of AXA XL's global reinsurance operations,  “Under this consolidated structure, the alternative capital business will offer investors a full suite of underwriting, that will leverage AXA XL's world-class risk origination and underwriting franchise: ILS asset management, utilising New Ocean's proven track record and fiduciary experience; and fronting activities/insurance management services for transacting business through AXA XL's balance sheet, directly supported by our experienced risk and structured finance experts.”

“As a key source of risk origination for our alternative capital activities lie within our Reinsurance operations, Dan will join our global Reinsurance Leadership Team.  The new alignment will help accelerate our alternative capital activity and provide greater flexibility for our underwriters and ultimately our brokers and clients,” Cooper added.

Brookman joined AXA XL in early 2016 as senior vice president of alternative capital and was promoted to lead the team in 2017. 

AXA XL, New Ocean Capital Management, acquisition, alternative capital

Bermuda Re