Armour, a Bermuda-based P/C runoff insurance business, announced it has raised up to $500 million to form a reinsurance group called Armour Group Ltd.

The equity commitments were made in partnership with an investor group led by Aquiline Capital Partners, a New York-based private equity firm with Jeff Greenberg at the helm as chairman and CEO. Greenberg, an ex-CEO and chair of Marsh & McLennan Companies, is the brother of Evan Greenberg, CEO of Chubb, and son of Maurice “Hank” Greenberg, the former leader of American International Group and head of Starr Companies.

The new reinsurance company, Armour Group Ltd., will co-invest in global P/C runoff transactions in parallel with the group’s affiliates. The investment will also provide growth capital for the Armour team and platform to execute on expanding runoff market opportunities, said a statement issued by Armour, which was founded in 2007 by Brad Huntington and John Williams.

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 runoff 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.

“Aquiline’s investment in Armour reflects the growing demand for runoff as an option for insurance companies that are looking to solve deteriorating reserve positions and optimize their capital,” said Greenberg at Aquiline, which was founded in 2005 to invest in financial services and financial technology.

“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 capitalize on the market opportunity,” he added.

Jefferies served as financial adviser to Armour on the transaction; Trebuchet was advised by Clifford Chance LLP, and Aquiline was advised by Sidley Austin LLP.

Source: Armour/Trebuchet Holdings

Topics Reinsurance Property Casualty