Aeolus Receives Additional Capital

Bermuda-based Aeolus Ltd. announced that its parent holding company, Aeolus L.P., has increased its capital base to over $1 billion. The new capital is being supplied from a group of investors led by Warburg Pincus, an initial investor in the company, and Merrill Lynch Global Private Equity, the private equity arm of Merrill Lynch, as well as the company’s founders, Peter Appel and David Eklund.

“Warburg Pincus and Merrill Lynch Global Private Equity have each invested $350 million in the company, and Arch Reinsurance Ltd., a subsidiary of Arch Capital Group Ltd., and an initial investor in the company, has increased its investment to $50 million,” said the announcement. “Certain other investors include Banc of America Capital Investors and Wachovia Capital Partners.”

The bulletin explained that “Aeolus Ltd., through its wholly-owned subsidiary, Aeolus Re Ltd., operates as an unrated reinsurance platform initially targeting the property catastrophe segment of the worldwide reinsurance market. Since its inception in July 2006, Aeolus Re has been an active provider of fully collateralized property catastrophe protection to insurers and reinsurers on both an ultimate net loss and industry loss warranty basis.”

Appel, Aeolus Ltd. Chairman and CEO, commented: “We very much appreciate the support of our investors. The additional capital will allow Aeolus to provide our clients with their most sought after and difficult to find capacity–fully secured protection against their property catastrophe risks.”

Eklund, the Chairman of Aeolus Re, added: “Our acceptance in the marketplace has made it clear to us that there exists significant demand for a property catastrophe company that can combine the best security in the industry with very large limits of protection and a deep understanding of our clients’ businesses. Our additional capital will help us strengthen Aeolus Re’s quickly established presence in the market.”

Topics Reinsurance