KaylaRe is hitting the market, a new carrier focused on global specialty reinsurance coverage backed largely by Enstar.
The Class 4, Bermuda-based reinsurer debuts with $620 million in capital, $300 million of which is backed by an investment from Enstar. Another $270 million comes from funds managed by the global investment manager Hillhouse Capital Management Ltd. About $50 million comes from funds managed by Stone Point Capital LLC, a financial services-focused private equity firm.
Enstar co-founder Nick Packer will serve as KaylaRe’s CEO. Packer has been Enstar’s executive vice president and joint chief operating officer since 2001. He’s also been StarStone’s executive chairman and CEO going back to 2014. He’ll stay on the StarStone board, however, as a non-executive director. (StarStone is Enstar’s global underwriting subsidiary.)
The plan is for KaylaRe to deliver “superior risk-adjusted returns over market cycles through a diversified asset allocation and selective underwriting,” according to the reinsurer’s launch announcement. To accomplish this, KaylaRe signed a 35 percent quote share agreement with StarStone, plus loss portfolio transfer agreements with Enstar for certain legacy business. Over time, KaylaRe plans to develop and opportunistically write third-party premium and to participate in some future Enstar legacy transactions.
Enstar and Hillhouse will serve as KaylaRe’s exclusive reinsurance manager and primary investment manager, respectively, though KaylaRe will work with other investment managers.
Packer, in prepared remarks, referred to KaylaRe as a “differentiated total return reinsurer” that gains access through Enstar to “a high-quality, diversified portfolio of low-volatility specialty insurance risks and supporting infrastructure.”
With KaylaRe’s launch, Enstar has made a number of management changes:
Paul O’Sheahas been named President of Enstar and Executive Chairman of StarStone. O’Shea, a co-founder of Enstar, has served as Executive Vice President and Joint-Chief Operating Officer and a member of Enstar’s Board of Directors since 2001, and he has been primarily responsible for mergers and acquisitions at the company.
Orla Gregoryhas been appointed Chief Operating Officer of Enstar. Gregory has served as Chief Integration Officer since 2015. Previously, she served as Executive Vice President, Mergers and Acquisitions, and has held various other senior roles in her 13-year career with Enstar.
Paul Brockman and David Atkins will take on broader responsibility for Enstar’s core insurance and legacy activity, including oversight of claims, commutations and ceded reinsurance. Brockman, Chief Executive Officer of Enstar U.S., joined Enstar in 2012 and previously served as U.S. President and Chief Operating Officer and Head of Commutations. Atkins, Chief Executive Officer of Enstar EU and Global Head of Claims, has been with Enstar since 2003.
Demian Smith has been named Group Chief Executive Officer of StarStone. Smith most recently served as CEO of StarStone’s International segment and Chairman of its underwriting committee.
Additionally, David Message has been named Chief Underwriting Officer of StarStone.