Third Point Re takes minority stake in Arcadian Risk Capital

Third Point Reinsurance has invested in Arcadian Risk Capital, a start-up led by John Boylan, an industry executive with a 30-year track record in the global insurance market.

Third Point Re will own a minority stake in Arcadian, which has been established as a managing general agent (MGA).

Arcadian is incorporated in Bermuda and will operate from the island, though it also plans to open offices elsewhere as its operations grow. It will begin writing business as of October 1, 2020, having already received approval from the Bermuda Monetary Authority, initially focusing on excess casualty and professional lines.

Dan Malloy, chief executive officer of Third Point Re, said the partnership will allow Arcadian to build a profitable book of business using Third Point Re Bermuda’s balance sheet, at a time when the market needs strong new participants.

“We are not only investing in Arcadian, but  will also  provide insurance paper and capacity for the new venture,” he explained. “Our entrance into the Bermuda insurance market continues the company’s transformation into a specialty re/insurer.“

Boylan added: "We have witnessed a gradual hardening in underlying rate across many risk sectors for some months now, creating an opening for a well-capitalised company,  with no legacy and an experienced team of underwriters at its helm. Bermuda is well-known as a centre of innovation and is the perfect jurisdiction in which to set up and support a new insurance underwriter at this time.”