AXIS Capital Holdings Ltd., together with its direct and indirect subsidiaries and branches, announced that it has partnered with Stone Point Credit Adviser LLC to launch Monarch Point Re, a newly created collateralized reinsurer.

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.

Monarch Point Re, which will operate in Bermuda, will underwrite a diversified portfolio of casualty reinsurance business retroceded by subsidiaries of AXIS Capital.

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 Jan. 1, 2023.

Subsidiaries of AXIS Capital anticipate retroceding approximately $400 million of reinsurance written premium for the first year of the reinsurance agreement.

AXIS said 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.

Christopher Harris has been appointed chief executive officer of Monarch Point Re. A recognized leader in the re/insurance industry, Harris previously served as CEO and president of Montpelier Re and chairman of Blue Capital Reinsurance Holdings.

“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,” commented Harris.

“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, 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.”

Source: AXIS Capital