Pembroke, Bermuda – October 5, 2020 – Premia Holdings Ltd. (“Premia”) has agreed to acquire Navigators Holdings (Europe) NV (and its associated companies, including Assurances Continentales – Continentale Verzekeringen NV of Belgium and Canal Re S.A. of Luxemburg) (collectively referred to as “ASCO”) from The Hartford.  The transaction is subject to typical regulatory approvals.

ASCO is an established Continental European insurance group that is headquartered in Antwerp, Belgium with legal entities licensed to write business across 31 countries.

Premia is focused on acquiring and reinsuring legacy portfolios. ASCO will be Premia’s dedicated platform in the Continental European market and represents an important building block in Premia’s global platform for legacy solutions.

Bill O’Farrell, Chief Executive Officer of Premia, said:  “We are delighted that we have developed a positive solution with The Hartford for ASCO, and we look forward to welcoming ASCO and its staff into the Premia family.”

The Hartford was advised by Citi and Mayer Brown International LLP. Premia was advised by Clifford Chance US LLP.

About Premia

Premia Holdings Ltd. is a reinsurance group with operations in Bermuda, the U.S. and Europe that is focused on sourcing, structuring and servicing run-off business. With over $600 million in capital, Premia is well equipped to execute  acquisitions and reinsurance transactions in the global P&C run-off market. Premia is sponsored by Arch Capital Group Ltd. and Kelso & Company. 

Cautionary Statement 

The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements. This release or any other written or oral statements made by or on behalf of Premia Holdings Ltd. and its subsidiaries may include forward-looking statements, which reflect our current views with respect to future events and financial performance. All statements other than statements of historical fact included in or incorporated by reference in this release are forward-looking statements.

Forward-looking statements can generally be identified by the use of forward-looking terminology such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe” or “continue” or their negative or variations or similar terminology. Forward-looking statements involve our current assessment of risks and uncertainties. Actual events and results may differ materially from those expressed or implied in these statements.

All subsequent written and oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these cautionary statements. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Contacts

Premia Holdings Ltd.
Scott Maries, 441-278-9176
Chief Financial Officer
smaries@premiareltd.com

PEMBROKE, Bermuda–(BUSINESS WIRE)–Sep 16, 2020– Premia Holdings Ltd. (“Premia”), a leading reinsurance group focused on reinsuring and acquiring companies in runoff, has announced that Colin Grint will join Premia on October 1, 2020. Subject to customary regulatory approval, Colin will serve as Chief Executive Officer of Premia Managing Agency Ltd. and will have oversight of all of Premia’s operations in Europe. 

Colin is joining Premia from Arthur J. Gallagher, where he has served as Chief Operating Officer of its GGB Retail business. Colin previously served as CEO of both Charles Taylor’s and Capita’s Lloyd’s operations. Premia acquired Charles Taylor’s Lloyd’s Managing Agency in March 2020. 

Max Taylor, Chairman and Independent Non-Executive of Premia Managing Agency Ltd., noted, “We are delighted with the appointment of Colin to the Premia business. His in-depth expertise and knowledge of the Lloyd’s market will be critical in taking Premia’s operations to the next level of success.” 

Bill O’Farrell, Chief Executive Officer of Premia Holdings Ltd., added, “We have completed four transactions in the last ten months in the UK and we are thrilled to be adding Colin’s deep Lloyd’s expertise, commitment to operational excellence, and proven industry leadership to our team. This is an important milestone for Premia as we continue to expand our operations.” 

About Premia

Premia Holdings Ltd. is a reinsurance group with operations in Bermuda, the U.S. and Europe that is focused on sourcing, structuring and servicing run-off business. With nearly $600 million in capital, Premia is well equipped to handle acquisitions and reinsurance transactions in the global P&C run-off market. Premia is sponsored by Arch Capital Group Ltd. and Kelso & Company. 

Cautionary Statement 

The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements. This release or any other written or oral statements made by or on behalf of Premia Holdings Ltd. and its subsidiaries may include forward-looking statements, which reflect our current views with respect to future events and financial performance. All statements other than statements of historical fact included in or incorporated by reference in this release are forward-looking statements.

 Forward-looking statements can generally be identified by the use of forward-looking terminology such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe” or “continue” or their negative or variations or similar terminology. Forward-looking statements involve our current assessment of risks and uncertainties. Actual events and results may differ materially from those expressed or implied in these statements. 

All subsequent written and oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these cautionary statements. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. 

Contacts

Premia Holdings Ltd.
Scott Maries, 441-278-9176
Chief Financial Officer
smaries@premiareltd.com

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NEW YORK (February 12, 2020) – Kroll Bond Rating Agency (KBRA) affirms the insurance financial strength rating (IFSR) of A- for Premia Reinsurance Ltd. (Premia Re), a class 4 Bermuda specialty reinsurer focused on acquiring nonlife run-off liabilities. KBRA also affirms the issuer rating of BBB for the organization’s ultimate holding company, Premia Holdings Ltd. (Premia Holdings). Additionally, KBRA affirms the rating of BBB for Premia Holdings’ outstanding senior unsecured notes. The Outlook for all ratings is Stable.

The ratings reflect Premia Re’s sound capitalization, operating profitability and seasoned management team. Premia Re’s risk-based capital ratio (BSCR) is on par with, or above, its run-off peers. Additionally, Premia Re has generated net income each year since inception, inclusive of start-up expenses. Three transactions were finalized during 2019, with mutual agreement reached on two additional ones by year-end that are currently awaiting regulatory approval. Premia Holdings’ management team has extensive experience in the reinsurance industry and currently employs more than 100 professionals in the sourcing, structuring and servicing of the legacy business it has acquired to date and its third-party fee business. Moreover, Premia Re benefits from a whole account quota share agreement provided by Arch Re, one of its founding sponsors. Premia Holdings maintains conservative financial leverage of roughly 20% at 9/30/2019.

Balancing these strengths is the start-up nature of the company and the execution risk for Premia Re’s management team as they enter a mature sector with established competitors. Although KBRA acknowledges that the property/casualty run-off business has demonstrated favorable return characteristics that are largely uncorrelated to the overall financial markets, the potential still exists for run-off business to experience adverse reserve development. Premia Holdings has somewhat mitigated this risk through the acquisition of Alan Gray LLC, a well-established and highly respected claim and audit service firm that provides a fee-based operating model that complements Premia Re’s business strategy. Finally, while its initial capital raise was oversubscribed, the ability of the management team to source additional capital at favorable pricing and terms to support continued growth has yet to be tested.

The Stable Outlook reflects KBRA’s expectation that Premia Re will continue to maintain sound capitalization while successfully executing its run-off acquisition strategy. Additionally, KBRA expects Premia Re to retain key members of its management team and preserve financial flexibility through conservative balance sheet metrics.

The ratings are based on KBRA’s Global Insurer & Insurance Holding Company Rating Methodology published on October 10, 2017. To access ratings, reports and disclosures for Premia Reinsurance Ltd., click here. To access ratings, reports and disclosures for Premia Holdings Ltd., click here.

Related Publications: (available at www.kbra.com)
▪ U.S. Property and Casualty Insurance 2020 Outlook: Bedrock Capital
Underpins Stability
▪ U.S. Title Insurance 2020 Outlook: The New Normal…For Now
▪ Quarterly (Re)Insurance Insights

Analytical Contacts

Carol Pierce, Senior Director
(646) 731-3307
cpierce@kbra.com
Andrew Edelsberg, Managing Director
(646) 731-2371
aedelsberg@kbra.com
Donna Halverstadt, Managing Director
(646) 731-3352
dhalverstadt@kbra.com

Business Development Contact

Tina Bukow, Managing Director
(646) 731-2368
tbukow@kbra.com

About KBRA and KBRA Europe

KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider, and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.

(September 11,  2019) – Charles Taylor and The Standard Club announce the sale, subject to regulatory approval, of Charles Taylor Managing Agency (and its associated companies, including The Standard Syndicate Services Limited and The Standard Syndicate Services Asia Pte. Ltd.) and the Lloyd’s corporate names, to a subsidiary of Premia Holdings Ltd. (Premia). 

Premia is a reinsurance group, focused on acquiring and reinsuring run-off portfolios. The acquisition of the managing agency will allow Premia to establish a dedicated legacy platform in the Lloyd’s market. 

All the staff of Charles Taylor Managing Agency will transfer to the new business which is expected to develop additional reinsurance to close (RITC) and run-off solutions for legacy business in Lloyd’s. Premia is fully committed to providing continuity to the run-off of Syndicate 1884. 

David Marock, Group Chief Executive Officer, Charles Taylor, said: “I am delighted that we have achieved a positive outcome and exciting future for the managing agency and our staff who work for the business. We look forward to working closely with Premia and to providing services to support them as they develop their new business proposition.” 

William O’Farrell, Group Chief Executive Officer of Premia, said: “Premia has been successfully delivering run-off solutions to insurers in the global P&C market for a number of years. This acquisition will enable us to deliver the same professional management of run-off to Lloyd’s insurers with trapped capacity and legacy portfolios and we are committed to providing continuity in the run-off of Syndicate 1884. We have the financial and operational capacity and expertise to deliver high quality solutions to Lloyd’s insurers.” 

Jeremy Grose, Chief Executive, The Standard Club, said: “This is a very positive outcome for The Standard Club as it enables us to make a clean exit from the club’s investment in the managing agency and syndicate. We are fully focused on delivering the club’s strategy to meet members’ core P&I insurance needs, to provide them with a wide range of insurance and to diversify the club’s source of revenues.” 

The financial terms of the transaction, which is subject to regulatory approval by Lloyd’s, the PRA, and FCA, are not being disclosed. 

Charles Taylor and The Standard Club were advised by Willis Re Corporate Solutions

Contacts

Mike Lord, Group Communications Director
Charles Taylor plc
+44 203 320 8938
mike.lord@ctplc.com
Vanessa Chance, Partner
Newgate
+44 020 3757 6870
charlestaylortrade@newgatecomms.com

About Charles Taylor (www.ctplc.com) 

Charles Taylor plc is a global provider of insurance-related technical services and solutions dedicated to enabling the global insurance market to do its business fundamentally better. 

We have been providing insurance-related professional services and technological solutions since 1884. Today, we employ around 3,000 staff in more than 100 locations spread across 30 countries in Europe, the Americas, Asia Pacific, the Middle East and Africa. 

We are distinctive in our market in that our professional services and technological solutions support every stage of the insurance lifecycle and every aspect of the insurance operating model. For the Property & Casualty (P&C) insurance market, we handle all major commercial lines, along with the more technical areas of personal lines; we do so similarly for the life and health insurance markets. 

The clients we support range from insurers – including corporates, mutuals, captives, MGAs, Lloyd’s syndicates and reinsurers – to brokers, distributors and corporate insureds. 

Our market-leading breadth of services and solutions, world‑class technical expertise, extensive global presence and 100% focus on insurance means we can manage and resolve virtually any insurance-related matter, wherever and whenever it occurs. 

About Premia Holdings (www.Premiaholdings.com ) 

Premia Holdings Ltd. is a reinsurance group with operations in Bermuda, the U.S. and Europe that is focused on sourcing, structuring and servicing run-off business. With over $500 million in capital, Premia is well equipped to handle legacy acquisitions and reinsurance transactions in the global P&C run-off market. Premia is sponsored by Arch Capital Group Ltd. and Kelso & Company. 

About The Standard Club (www.standard-club.com) 

The Standard Club is a mutual insurance association and is a member of the International Group of P&I Clubs. The club is owned by its shipowner members and controlled by a board of directors drawn from the membership. It offers a broad range of P&I insurance and other marine and energy covers that represent excellent and sustainable value. It is recognised for providing excellent service through solving members’ problems and provides members with S&P A-rated financial security. 

The Standard Club insures 159m gt of shipping and has an S&P A rating. It is managed by Charles Taylor group companies.

NEW YORK, NY (February 12, 2019) – Kroll Bond Rating Agency (KBRA) affirms the insurance financial strength rating (IFSR) of A- of Premia Reinsurance Ltd. (Premia), a class 4 Bermuda specialty reinsurer focused on acquiring nonlife run-off liabilities. KBRA also affirms the issuer rating of BBB of the organization’s ultimate holding company, Premia Holdings Ltd. (Premia Holdings). Premia and Premia Holdings are collectively referred to as Premia Re. Additionally, KBRA affirms the rating of BBB of Premia Holdings’ outstanding senior unsecured notes. The Outlook for all ratings is Stable.

The ratings reflect Premia Re’s sound capitalization, which KBRA believes is sufficient to support the company’s planned acquisition strategy of run-off liabilities in the medium term. Part of Premia’s capital consists of $110 million of senior unsecured notes due January 2024. Additionally, Premia Re’s ratings benefit from the equity investment of Arch Capital Group Ltd. (Arch Capital) (NASDAQ: ACGL), a 25% quota share reinsurance agreement between the companies, as well as underwriting, systems, and operational support from Arch Capital. Moreover, Premia Re’s management team has extensive experience in the reinsurance market, especially in the run-off sector, and has successfully closed on a number of run-off transactions which highlight its differentiated approach and experience during its short operating history. Premia Re acquires companies and portfolios in less volatile lines of business, eschewing property catastrophe exposure, and will maintain conservative financial leverage – currently about 22%.

Balancing these strengths is the start-up nature of the company and the execution risk for Premia Re’s management team as they enter a mature sector with established competitors. Although KBRA acknowledges that nonlife run-off business has demonstrated favorable return characteristics that are largely uncorrelated to the overall financial markets, the potential still exists for run-off business to experience adverse reserve development. This risk has been somewhat mitigated by the acquisition in September 2018 of Alan Gray LLC, a well-established and highly respected claim and audit service firm that will represent a second operating pillar for Premia. Premia Re reported net income and a breakeven combined ratio in 2017, its first year of operations. KBRA expects improved results in 2018. Finally, key man risk exists in that Premia Re needs to continue to build out its management team over time to develop bench strength for succession planning.

The Stable Outlook reflects KBRA’s expectations that Premia Re will continue to maintain sound capitalization while successfully executing its run-off acquisition strategy. Additionally, KBRA expects Premia Re to experience minimal credit losses in its investment portfolio, retain key members of its management team, and preserve financial flexibility through conservative balance sheet metrics.

The ratings are based on KBRA’s Global Insurer & Insurance Holding Company Rating Methodology published on October 10, 2017.

An updated report will be available shortly.

HAMILTON, Bermuda–(BUSINESS WIRE)–Jan 10, 2019–Premia Holdings Ltd. (“Premia”), a leading reinsurance group focused on reinsuring and acquiring companies in runoff, has acquired Public Service Insurance Company (“PSIC”) and its wholly-owned subsidiary Western Select Insurance Company (“WSIC”) from the Director of the Illinois Department of Insurance, acting in her capacity as statutory and court affirmed Rehabilitator for Public Service Insurance Company (“Rehabilitator”).

In this groundbreaking transaction, Premia has acquired certain assets of PSIC (including WSIC) and the direct insurance liabilities of PSIC, while other assets and liabilities were retained in and channeled to the Estate of PSIC, in rehabilitation.

In addition to the Illinois Department of Insurance’s approval, the transaction was approved by the presiding judge of the Chancery Division of the Circuit Court of Cook County Illinois overseeing the Rehabilitation of the PSIC Group. After notice, an objection period, and extensive briefing on the issues, the Court approved the Amended Plan and the Stock Purchase Agreement between Premia Holdings Inc. and the Rehabilitator.

As noted by Bill O’Farrell, Chief Executive Officer of Premia Holdings Ltd., “This was a new and elegant solution for the policyholders of Public Service and the fact that not a single claimant, policyholder, ceding company or reinsurer objected to this transaction is further evidence of the compelling solution in this matter and a real credit to the Illinois Department of Insurance.”

The transaction closed on January 9, 2019. Following closing, Mr. O’Farrell also stated, “I am very pleased that we were able to deliver this solution to the Public Service Estate. It provides better capital support to Public Service’s policyholders and provides Premia a strong operating platform for additional U.S. transactions.”

DLA served as deal counsel to Premia in this matter, while Griffin Financial Group acted as financial advisor to the Director of the Illinois Department of Insurance in her capacity as Rehabilitator of PSIC.

About Premia

Premia Holdings Ltd. is a reinsurance group with operations in Bermuda, the U.S. and Europe that is focused on sourcing, structuring and servicing run-off business. With over $500 million in capital, Premia is well equipped to handle acquisitions and reinsurance transactions in the global P&C run-off market. Premia is sponsored by Arch Capital Group Ltd. and Kelso & Company.

Cautionary Statement

The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements. This release or any other written or oral statements made by or on behalf of Premia Holdings Ltd. and its subsidiaries may include forward-looking statements, which reflect our current views with respect to future events and financial performance. All statements other than statements of historical fact included in or incorporated by reference in this release are forward-looking statements.

Forward-looking statements can generally be identified by the use of forward-looking terminology such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe” or “continue” or their negative or variations or similar terminology. Forward-looking statements involve our current assessment of risks and uncertainties. Actual events and results may differ materially from those expressed or implied in these statements.

All subsequent written and oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these cautionary statements. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Contact

Premia Holdings Ltd.
Scott Maries, 441-278-9176
Chief Financial Officer
smaries@premiareltd.com

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A stock purchase agreement provides a Bermuda-headquartered group that hit the ground running a little more than a year ago with an opportunity to execute its strategy of sourcing, structuring and servicing runoff business.

Documents filed recently in the Cook County, Ill., Court of Chancery show that a U.S. affiliate of Premia Holdings Ltd. has agreed to acquire the outstanding stock of rehabilitating commercial lines insurer Public Service Insurance Co. in a transaction that involves the transfer of total net reserves of $153.8 million.

The receiver for Public Service Insurance, a former writer of workers’ compensation, commercial multiperil and certain other lines of business, previously attempted to execute a loss portfolio transfer with Catalina Holdings (Bermuda) Ltd.’s SPARTA Insurance Co. When that transaction fell through, documents show, the receiver directed financial adviser Griffin Financial Group LLC to conduct a second auction. That process yielded two proposals, and the receiver concluded that the structure proposed by Premia represented the better option for avoiding an immediate liquidation of Public Service Insurance’s liabilities and maintaining the greatest value of assets in the receivership estate to settle claims of non-policyholder creditors.

Terms of the deal, according to the Aug. 26 stock purchase agreement, call for Premia to take on Public Service Insurance’s liabilities through an acquisition of all of the insurer’s outstanding stock for consideration at closing of $2.5 million with contingent consideration of an additional $4.4 million based on its success in collecting on reinsurance recoverables. Premia intends to recapitalize Public Service Insurance to a risk-based capital level of at least 300%, provide the insurer with the necessary liquidity to discharge the policyholder liabilities, extend reinsurance coverage and assume the administrative costs associated with the runoff process.

The receiver argued that the deal will “better protect the interests and expectations of policyholders” relative to an alternative scenario in which Public Service Insurance remained in rehabilitation.

Documents did not reveal the identities of the other parties that expressed interest in Public Service Insurance during the second auction process. During the first auction, the receiver previously disclosed that Armour Group, now known as Trebuchet Group Holdings Ltd., along with Enstar Group Ltd. and Sirius International Group Ltd., joined Catalina in bidding on the business.

Backed by Arch Capital Group Ltd. and Kelso & Co. LP, Premia made its first splash with the July 2017 news that Premia Reinsurance Ltd. agreed to provide up to $1.03 billion in adverse development cover to AmTrust Financial Services Inc. in exchange for $675 million in premium. Premia Re boasted total initial capitalization of $500 million; it ended 2017 with total shareholders’ equity of $517.4 million.

The new reinsurer generated $811.1 million in net premiums written and earned in 2017, according to its income statement for the year as filed with the Bermuda Monetary Authority. Kroll Bond Rating Agency said in a February rating report that the company’s level of premium volume in its first year had been “significantly over plan” and established “a solid foundation.”

In addition to the high-profile AmTrust deal, Premia Re entered a retroactive reinsurance agreement with GuideOne Mutual Insurance Co., effective Sept. 30, 2017, that provided an aggregate coverage limit of $240 million in loss and loss-adjustment-expense reserves in three specific sections, with a particular focus on the cedant’s for-profit senior living community business from accident year 2012 through the first half of accident year 2017.

GuideOne stopped providing liability coverage for senior living communities, including both for-profit and not-for-profit communities, effective July 5, 2017, later saying that the business had been “very unprofitable.” The premium paid by GuideOne totaled $181.5 million, and Premia Re said it ceded 25% of the transaction to Arch Reinsurance Ltd.

The February Kroll report showed that workers’ comp and general liability business combined to account for 83.3% of Premia Re’s booked loss reserves as of Sept. 30, 2017. Workers’ comp accounted for 78.7% of the Public Service Insurance net reserves subject to the transaction. The company blamed four years of significant adverse reserve development in the years leading up to its rehabilitation in part on its business in the California market, where it had grown quickly between 2008 and 2013. It was placed in rehabilitation in March 2017.

Meanwhile, Premia recently enhanced the scope of its capabilities by buying Boston-based international claims, audit and risk management advisory firm Alan Gray LLC. The company said upon announcing that deal on Sept. 12 that it is “well-equipped” to handle acquisitions and reinsurance transactions in the global runoff market.

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