Canopius Acquires Bermuda-Based Specialty Reinsurer Multi-Strat Holdings

March 16, 2020

Canopius Group Ltd. has purchased a majority stake in Bermuda-based Multi-Strat Holdings Ltd.

Financial details of the transaction were not disclosed.

MultiStrat is a specialty reinsurance group that writes both prospective and retrospective casualty reinsurance sourced through select reinsurance intermediaries. MultiStrat, working with its investment broker dealer partners, places casualty insurance inked security (ILS) transactions with alternative investors.

MultiStrat’s reinsurance and capital advisory teams operate through both its Bermuda-based Class 3A segregated accounts company and insurance agency, and Garden Insurance, its Vermont protected cell company.

Canopius is a global specialty re/insurer headquartered in London. One of the top five businesses at Lloyd’s, Canopius writes in excess of $2 billion premium annually. It operates in the UK, U.S., Bermuda, Netherlands, Singapore and Australia.

Canopius transacts business through three principal underwriting platforms: Canopius Managing Agents Ltd., managing Lloyd’s syndicates 4444 and 1861; Canopius US Insurance Inc., a Chicago-based excess and surplus lines company, and Canopius Reinsurance Ltd., a Bermudian reinsurance carrier.

“We’re very pleased and excited that Bob Forness and the MultiStrat team are joining the Canopius Group. With a strong track record in the casualty ILS market, MultiStrat is recognized for innovation and building strong partnerships with investors and reinsurers,’ said Michael Watson, chairman and CEO of Canopius.

“We believe that the addition of MultiStrat will be highly complementary to our existing ILS operations based in Bermuda,” Watson added. “We’re confident that with active support from Canopius, MultiStrat can broaden its capabilities and grow profitably in the future.”

“As the market and thought leader in optimizing the transfer of casualty risk to the global capital markets, MultiStrat’s innovative products can now be scaled more rapidly with the support of Canopius’ expertise and resources,” said Bob Forness, CEO of MultiStrat.

“Chemistry is important in finding the right fit and I’ve had the fortunate opportunity to work with Michael Watson on two prior occasions. Casualty ILS capacity works best when paired with traditional capacity, blending the strengths of both to deliver cost effective coverage for reinsureds and attractive returns for investors,” Forness continued.

MultiStrat will continue to operate autonomously and will retain its brand.

Stonybrook Capital served as the exclusive financial adviser to MultiStrat on this transaction.

Source: Canopius Group

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