Armour Announces $500M Investment for New Reinsurer
Armour, a P&C run-off insurance business founded in 2007 by Brad Huntington and John Williams, announced that it has raised up to $500 million in equity commitments in partnership with an investor group led by Aquiline Capital Partners, a New York-based private equity firm investing in financial services and financial technology.
Investment proceeds will be used to fund the formation of a new reinsurance group, Armour Group Ltd., that will co-invest in global P&C run-off transactions in parallel with the group’s affiliates. The investment will also provide growth capital for the Armour team and platform to execute on the expanding run-off market opportunity.
As part of the transaction, the former Armour holding company will rename itself Trebuchet Holdings and transfer the Armour brand name to the new group. Trebuchet Holdings will also contribute its existing P&C run-off platform to the newly established holding company, including the firm’s claims management operation (Armour Risk) and, subject to certain approvals, the group’s affiliate ILS Investment Management, which will continue its existing business.
“Aquiline’s investment in Armour reflects the growing demand for run-off as an option for insurance companies that are looking to solve deteriorating reserve positions and optimize their capital,” said Jeff Greenberg, Chairman and Chief Executive Officer of Aquiline. “We are excited to partner with the highly-experienced team at Armour and believe that their ILS management capabilities provide a strong competitive differentiator. The formation of our permanent capital vehicle provides the team with the full toolkit to capitalize on the market opportunity.”
Armour Founder and CEO Brad Huntington noted, “We are excited to have Aquiline as a partner as we enter our next phase of growth. Given Aquiline’s deep insurance industry experience, we believe they are an ideal partner to help us grow the team and scale our operation.”
Jefferies served as financial advisor to Armour on the transaction. Trebuchet was advised by Clifford Chance LLP. Aquiline was advised by Sidley Austin LLP.
About Armour Group Ltd.
Armour is a leader in the P&C run-off and headquartered in Bermuda. The business has multiple capabilities including the new reinsurer working with the established asset management and specialist servicing companies. It is a leading provider of capital and services to the global P&C run-off market. Armour specializes in the creation and implementation of run-off solutions, services and acquisitions within the global insurance and reinsurance market place.
About Aquiline Capital Partners LLC
Aquiline Capital Partners, founded in 2005, is a private equity firm based in New York investing in businesses across the financial services sector in banking and credit, insurance, investment management and markets, and financial technology and services. For more information about Aquiline, its investment professionals, and its portfolio companies, please visit: www.aquiline.com.
