Newly formed Bermuda insurer AXIS Specialty Limited announced that that its US subsidiary, AXIS Specialty U.S. Holdings, Inc., has entered into agreements to purchase the Royal & SunAlliance Personal Insurance Company and the Connecticut Specialty Insurance Company.
Upon the conclusion of the acquisitions, which are still subject to regulatory approvals, the two insurers, which the announcement described as shell companies, i.e. not not actively doing business, will be renamed Axis Specialty Reinsurance Company (ASR) and Axis Specialty Insurance Company (ASI), respectively.
“Upon consummation of the acquisition, ASR will be licensed to write insurance and reinsurance in all 50 states, the District of Columbia and Puerto Rico. ASI will be licensed as a surplus lines carrier in 38 states,” said the announcement.
AXIS, one of the biggest of a number of new Bermuda-based insurers, was formed last November with an initial capitalization of $1.6 billion by investment groups headed by Trident II LP, a trust administered by MMC Capital, a unit of MarshMac. Other investors include The Blackstone Group, Credit Suisse First Boston, JP Morgan Partners and Thomas H. Lee Partners.
John Charman, President and CEO of AXIS Specialty, stated that”These acquisitions firmly establish AXIS in the largest insurance and reinsurance market globally. We are now better equipped to bring our broad-ranging specialty expertise through our modern business platform to our American clients and intermediaries. AXIS is well on its way to establishing itself as one of the premier global specialty underwriting businesses.”
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