Axis and Stone Point launch $400m collateralised reinsurer

Former Montpelier Re chief executive officer Christopher Harris will head up a new $400 million Bermuda-based collateralised casualty reinsurer launched by Axis Capital Holdings.

Axis announced today that Monarch Point Re had been launched in partnership with Stone Point Credit Adviser to underwrite a diversified portfolio of casualty reinsurance business retroceded by subsidiaries of Axis Capital, with $400 million of reinsurance written premium expected to be ceded in the first year.

The companies said the launch was accompanied by a capital raise of over $400 million of equity, including a $75 million equity investment from a subsidiary of Axis Capital and a $75 million equity investment from Stone Point Credit.

Stone Point Credit will serve as Monarch Point Re’s exclusive investment manager and expects to invest in a diversified portfolio of corporate credit.

“The multi-year reinsurance agreement is effective January 1, 2023,” the company said. “Subsidiaries of Axis Capital anticipate retroceding approximately $400 million of reinsurance written premium for the first year of the reinsurance agreement.

“The launch of Monarch Point Re reflects the company’s continued commitment to better serve its customers and distribution partners by expanding its capacity through third-party capital.”

Harris, who was also chairman of Blue Capital Reinsurance Holdings, an early participant in insurance linked securities, said: “Monarch Point Re benefits from the specialty underwriting capabilities of Axis and the investing expertise of Stone Point Credit, providing a tremendous opportunity to deliver value to the market and all of our stakeholders.”

Harris recently stepped down as a director of Bermuda domestic insurer BF&M.

“The launch of Monarch Point Re further demonstrates Axis’s ability and desire to meet the needs of our customers and distribution partners by expanding our specialty reinsurance capacity,” said Vince Tizzio (pictured), president and CEO of Axis Capital. “Moreover, in Stone Point Credit, we are partnering with an exceptional investment manager, which aligns with our alternative capital strategy of matching the right risk with the right capital.”

“We are excited to partner with AXIS to launch Monarch Point Re and bring together the expertise of the two firms,” said Jim Carey, president of Stone Point. “We believe Stone Point Credit’s experience managing capital for the insurance industry, combined with AXIS’s expertise in risk management, will enable us to generate substantial value for all stakeholders.”

Stone Point Credit is a subsidiary of Stone Point Capital, an alternative investment firm based in Greenwich, Connecticut, with more than $50 billion of assets under management. Stone Point Capital targets investments in companies in the global financial services industry and related sectors.

It has invested in many Bermuda-based reinsurers in the past and is a current investor in Axis and legacy insurer Enstar.