New Mountain Capital launches VictoryRe

NY-based alternative investment firm New Mountain Capital announced the launch of VictoryRe, a new reinsurance platform, marking the firm’s entry into the reinsurance carrier market with a long-term vision to build a diversified, multi-line reinsurance platform.

In connection with this launch, VictoryRe has established NovaRe, a collateralized reinsurance vehicle designed to provide capacity to Novacore, a specialty insurance managing general agent. NovaRe will operate as a dedicated vehicle within VictoryRe and will reinsure select specialty business originated by Novacore. The structure represents New Mountain’s first step in building an integrated insurance platform combining underwriting, distribution and long-term capital. VictoryRe is designed as a long-term platform to reinsure insurance liabilities through aligned capital solutions.

VictoryRe intends to provide incremental, multi-year premium capacity to support Novacore’s platform. NovaRe will participate on a risk-attaching basis across diversified property and casualty portfolios within Novacore’s platform.

“The launch of VictoryRe and NovaRe reflects our conviction in specialty insurance and our strategy of building integrated and scaled businesses. We see significant opportunities to thoughtfully expand VictoryRe over time across complementary areas of the insurance and reinsurance market.” – Steve Klinsky, CEO and Founder at New Mountain.

“The creation of VictoryRe and NovaRe are the product of a long-standing firm initiative to enter the reinsurance carrier space, and partnering with the Novacore team was a logical first step. We look forward to growing VictoryRe alongside Novacore and investing in additional areas within the insurance ecosystem, particularly those that benefit from long-duration capital and disciplined asset-liability management that are more asset intensive.” – Adam Weinstein, President and COO of New Mountain, and Cyrus Moshiri, Managing Director and Head of Structured Credit.