TIH and Starwind launch Fractal Re
Starwind Specialty Insurance Services, a subsidiary of TIH, has partnered with Stone Point Credit to launch Fractal Re, a newly created collateralized reinsurer that will provide reinsurance capacity across Starwind’s diversified portfolio of casualty programs.
The launch was accompanied by a capital raise of $270 million of equity, with participation from institutional and industry investors including minority investments from Nationwide, Enstar Group as well as the TIH investor group and the Starwind management team. State National, in an expansion of its strategic partnership with Starwind, will serve as the platform’s fronting carrier.
Fractal Re will participate in a diversified portfolio of casualty and specialty risks underwritten by Starwind, a casualty MGA platform focused on underwriting and distributing niche and exclusive insurance products with over $3 billion in gross premiums written annually. The multi-year reinsurance agreement is effective October 1, 2024. The launch of Fractal Re reflects investors’ desire to partner with best-in-class underwriting teams and Starwind’s continued commitment to better serve its customers and distribution partners by expanding its capacity through third-party capital.
As part of the transaction, a subsidiary of Enstar Group has entered into an agreement which will provide sidecar investors with an option to obtain finality through a novation transaction after a certain period of time. Enstar has developed the FEO (Forward Exit Option) solution specifically tailored to provide finality to third-party insurance-linked securities investors.
Additionally, Stone Point Credit will serve as the investment manager to Fractal Re, targeting a diversified portfolio of credit strategies designed to match the vehicle’s liability profile.
“The launch of Fractal Re demonstrates Starwind’s ability to meet the needs of our customers and distribution partners by expanding our casualty and specialty capacity.” – Bill Goldstein, CEO of TIH Underwriting.
“We’re delighted to support an innovative securitization of casualty insurance risk that delivers meaningful reinsurance capacity to Starwind, attractive risk -adjusted returns to investors, and reliable, high quality reinsurance security to State National.” – Matt Freeman, CEO of State National.
“We believe Stone Point Credit’s experience managing capital for the insurance industry, combined with Starwind’s market leading underwriting, will enable us to generate substantial value for all stakeholders.” – Jim Carey, Co-CEO of Stone Point.
