News

Press releases and other news about Premia.



KBRA Affirms Insurance Financial Strength Rating of A- of Premia Re

By | Uncategorized

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.

Premia Holdings Acquires Public Service Insurance Company Out of Rehabilitation in an Innovative Transaction

By | News

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

View this news release on Associated Press News at https://www.apnews.com/6bd718b6576945409cd42b38f7ab3370

View this news release on Business Wire at https://www.businesswire.com/news/home/20190110005644/en/

Runoff deal gives fast-growing reinsurer another opportunity for expansion

By | News

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.

View this news relaese on S&P Global Market Intelligence at https://www.spglobal.com/marketintelligence/en/news-insights/trending/zabqygkib9h00qmtjjobjg2

Premia Holdings Ltd. Has Acquired Alan Gray LLC

By | Uncategorized

HAMILTON, Bermuda–(BUSINESS WIRE)–Premia Holdings Ltd., a leading reinsurance group focused on reinsuring and acquiring companies in runoff, has acquired Alan Gray LLC, a highly respected international claims, audit and risk management advisory firm that has been a trusted advisor to its clients for over thirty years.

“I have been a client of Alan Gray’s for over 20 years across a broad spectrum of services. I know firsthand what a tremendous job they do for their clients. They bring tremendous expertise and cost effective solutions to every assignment. We are thrilled to make them a part of our group and we look forward to working with them to accelerate their growth and create even more satisfied clients,” commented Bill O’Farrell, CEO of Premia Holdings.

Alan Gray LLC was established in 1988 as a claims and audit advisory firm, and over the years has built a reputation as an efficient and trusted resource to those involved in the management of risk. The firm provides claims administration and audit services, actuarial, underwriting, legal bill auditing, reinsurance collections and risk management services to clients including leading insurers and reinsurers, MGAs, self-insured corporations and public entities.

“All of us on the Alan Gray team are very pleased to join the Premia team. It will allow us to bring our traditional services to new clients while providing our long standing clients expanded solutions to help them achieve their business objectives,” remarked Michael F. Ceppi, CEO of Alan Gray LLC.

Dowling Hales acted as exclusive advisor to Vanbridge, the seller.

KBRA Assigns Insurance Financial Strength Rating of A- to Premia Re

By | Uncategorized

NEW YORK–(BUSINESS WIRE)–Kroll Bond Rating Agency (KBRA) has assigned an insurance financial strength rating (IFSR) of A- to Premia Reinsurance Ltd. (Premia), a class 4 Bermuda specialty reinsurer focused on acquiring nonlife run-off liabilities. KBRA has also assigned an issuer rating of BBB to the organization’s ultimate holding company, Premia Holdings Ltd. (Premia Holdings). Premia and Premia Holdings are collectively referred to as Premia Re. Additionally, KBRA has assigned a rating of BBB to 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 transactions during the company’s first year of operation. Premia Re acquires companies and portfolios in less volatile lines of business, eschewing property catastrophe exposure, and will maintain conservative financial leverage – currently 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. KBRA expects Premia Re to report a small operating loss in 2017, its first year of operations, and achieve profitability 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.

Please click here to view the report.

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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 recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and 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.

Contacts

Kroll Bond Rating Agency
Analytical:
Carol Pierce, 646-731-3307
Director
cpierce@kbra.com
or
Fred DeLeon, 646-731-2352
Director
fdeleon@kbra.com
or
Andrew Edelsberg, 646-731-2371
Managing Director
aedelsberg@kbra.com
or
Donna Halverstadt, 646-731-3352
Managing Director
dhalverstadt@kbra.com

Reactions Magazine Selected Premia Holdings Ltd. (“Premia”) as its Launch of the Year

By | Uncategorized

Premia is a Bermuda-based company that is backed by private equity firm Kelso & Company (“Kelso”) and insurer Arch Capital Group Ltd. (“Arch”). Premia raised US$510 million in initial capital, including US$100 million from Arch and its co-investors, US$300 million from Kelso and its co-investors, and US$110 million in senior unsecured debt from a leading private equity firm.

Premia’s January 2017 capital raise is notable for being the largest-ever start-up reinsurer dedicated to runoff solutions and for employing an innovative structure that was previously unutilized in the property and casualty runoff market. Upon its launch, Premia was immediately
recognized as a significant industry player and is now competing for some of the market’s largest runoff transactions.

Reactions magazine is a leading global re/insurance publication. Its annual awards recognize transactions that have made a lasting impression on the North American insurance and reinsurance industry.

Premia Holdings Ltd. Announces the Appointment of Zsolt Szalkai to Lead Its European Operations

By | News

HAMILTON, Bermuda–(BUSINESS WIRE)–Premia Holdings Ltd. (Premia) announced today that Zsolt Szalkai, most recently the Chief Liability Officer of DARAG Group, a member of its Executive Committee and the Chief Executive Officer of DARAG Germany, will join Premia in May 2018 as a key member of its senior management team and president of its European operations.

Mr. Szalkai has established a track record of successfully executing run-off reinsurance transactions and acquisitions. He has deep expertise and broad experience, from leading the pricing, structuring and negotiation of run-off transactions, to managing the operational excellence and integration of such transactions. Prior to DARAG, Mr. Szalkai spent several years in the insurance solutions team at KPMG in leading roles advising on German and international M&A and restructuring projects. Mr. Szalkai will not join Premia until May 2018 to allow him to honor the terms of a non-compete agreement with his former employer.

Commenting on the recruitment, Premia Chief Executive Officer Bill O’Farrell noted, “We are extremely pleased to have attracted such a talented executive as Zsolt, who is a recognized leader throughout the European run-off market. He is an excellent insurance operator, who maintains the highest standards. This, as well as Zsolt’s experience in establishing and building run-off operations, makes him an excellent fit with Premia and we look forward to him leading and expanding our European operations.”

About Premia

Premia Holdings Ltd. is a Bermuda-based reinsurance group focused on reinsuring insurance and reinsurance portfolios and acquiring companies in runoff around the world. Premia currently has operations in Bermuda and the United States. Premia Holdings is majority owned by funds controlled by Kelso & Company and its co-investment partners. Arch Capital Group Ltd., through its subsidiaries, is a minority shareholder in Premia and a strategic reinsurance partner.

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

View this news release on Business Wire at: https://www.businesswire.com/news/home/20170906006460/en/Premia-Holdings-Ltd.-Announces-Appointment-Zsolt-Szalkai

Premia hails ability to “quickly & quietly deliver” complex reinsurance transactions

By | News

Premia Holdings Ltd. Chief Executive Officer Bill O’Farrell has hailed the company’s ability to “quickly and quietly deliver” on complex reinsurance transactions, such as the loss development reinsurance agreement the company completed with AmTrust recently.

Premia Re was founded in January as a start-up Bermuda-based property & casualty insurance and reinsurance run-off group, with a $510 million initial capital raise and backing from Arch Capital and Kelso & Company.

Premia Re has clearly been working on the AmTrust transaction (which we covered last week here) for some time, given the scale of the deal, providing the insurer with a reinsurance agreement covering its first quarter 2017 and prior net reserves.

The terms of the deal see Premia Re assuming $625 million of net reserves, excess of approximately $5.96 billion, and also providing another $400 million of coverage in excess of AmTrust’s net carried reserves of around $6.59 billion as of March 31, 2017.Premia Holdings CEO Bill O’Farrell explained; “This significant transaction highlights our ability to quickly and quietly deliver tailored solutions to our clients for large and complex matters.

“We welcomed the opportunity to work with AmTrust on this important reinsurance agreement and look forward to a successful ongoing relationship with the Company.”

Run-off and legacy reinsurance deals take time to put into place and deals of this size can be particularly complex and time-consuming to complete. This is the first major deal announced by Premia Holdings and it will be interesting to see how quickly it can bring further transactions to fruition.

View this news release on Reinsurance News at: https://www.reinsurancene.ws/premia-hails-ability-quickly-quietly-deliver-complex-reinsurance-transactions/

Premia Holdings Ltd. Partners with AmTrust Financial Services, Inc. on Significant Reinsurance Agreement

By | News

Premia will provide adverse loss development coverage of up to $400 million in excess of carried net reserves as of March 31, 2017, plus assume an additional $625 million of carried net reserves

HAMILTON, Bermuda–(BUSINESS WIRE)–Premia Holdings Ltd. announced today that one of its wholly-owned subsidiaries, Premia Reinsurance Limited (“Premia Re”), has entered into an agreement to reinsure AmTrust Financial Services, Inc. (“AmTrust”) with respect to its first quarter 2017 and prior net reserves.

Premia Re will assume net reserves of $625 million in excess of approximately $5.96 billion in net reserves and provide $400 million of additional coverage in excess of AmTrust’s net carried reserves of approximately $6.59 billion as of March 31, 2017. Premia Re will post the reinsurance premium as collateral in trust and will provide additional collateral protections to AmTrust in connection with this transaction.

Commenting on the successful transaction, Premia Holdings Ltd. Chief Executive Officer William E. O’Farrell noted, “This significant transaction highlights our ability to quickly and quietly deliver tailored solutions to our clients for large and complex matters. We welcomed the opportunity to work with AmTrust on this important reinsurance agreement and look forward to a successful ongoing relationship with the Company.”

About Premia

Premia Holdings Ltd. is a Bermuda-based reinsurance group focused on reinsuring insurance and reinsurance portfolios and acquiring companies in runoff around the world. Premia currently has operations in Bermuda and the United States. Premia Holdings is majority owned by funds controlled by Kelso & Company and its co-investment partners. Arch Capital Group Ltd., through its subsidiaries, is a minority shareholder in Premia and a strategic reinsurance partner.

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

View this news release on Business Wire at: https://www.businesswire.com/news/home/20170109006339/en/Premia-Raises-510-million-Initial-Capital-Leading

Premia Raises $510 million In Initial Capital From Leading Investors To Target Global Property & Casualty Runoff Opportunities

By | News

– Bill O’Farrell to Lead Company

– Kelso & Company and Arch Capital are Founding Investors

HAMILTON, Bermuda–(BUSINESS WIRE)–Premia Holdings Ltd. (“Premia” or “the Company”), a newly-formed property & casualty (“P&C”) insurance and reinsurance group focused on providing runoff solutions, announced today that it has completed a $510 million initial capital raise. The formation of Premia represents one of the largest capital raises ever focused on the P&C runoff market and immediately establishes Bermuda-based Premia as a significant market participant.

Premia was founded and will be led by reinsurance industry veteran Bill O’Farrell, who will serve as Chief Executive Officer. The founding investors include Kelso & Company (“Kelso”), a leading private equity firm, its co-investors and an affiliate of Arch Capital Group Ltd. (“Arch”), a leading insurance and reinsurance group. In addition to its equity investment, Arch will serve as a key strategic reinsurance partner, allowing Premia to compete on the largest global runoff transactions. The remainder of the capital comes from other institutional investors, the Premia management team and senior members of Arch.

“We are very excited to introduce a new, strongly capitalized reinsurance group focused on P&C runoff,” said O’Farrell. “I have been gratified by the number of inbound calls I have already received from companies, both large and small, and their advisors, seeking runoff solutions from Premia. This has only validated my strongly held position that the P&C runoff market is in need of a specialist solutions provider as clients seek to address the inefficient capital drag arising from their runoff operations, free up management time to focus on their core live business, and diversify their legacy exposures away from the concentrated handful of runoff companies that have shaped the market to date.”

Chris Collins, Managing Director of Kelso, noted, “We believe we are entering this market at the right time with the right management team and with a differentiating partner in Arch. We are confident Premia will be a leading participant in the runoff market.”

Marc Grandisson, President and COO of Arch, commented, “We are very pleased to help launch Premia. We believe that Premia, with its strong management team, will be well positioned to provide innovative solutions and structures not available in the P&C runoff market today.”

Premia will look to insure, reinsure or acquire runoff portfolios and companies around the globe. Premia’s multi-disciplinary team has broad and deep P&C experience, covering all lines of business and geographies. Premia will work with its clients to design efficient runoff solutions tailored to their needs.

Premia’s leadership team will also include Scott Maries as Chief Financial Officer and Joe Calandro as Executive Vice President, along with additional talented team members within its operating units.

Premia was advised by Clifford Chance US LLP and Conyers Dill & Pearman Limited. Kelso was advised by Debevoise & Plimpton LLP. Arch was advised by Cahill Gordon & Reindel LLP.

Additional information regarding Premia may be obtained by calling Bill O’Farrell on +1 267 312 1620 or Scott Maries on +1 441 705 8697.

About Kelso & Company

Kelso has been investing in private equity for over 35 years. Kelso benefits from a successful investment track record, a long-tenured and stable investing team, and a reputation as a preferred partner to management teams and corporates. Since 1980, Kelso has raised a total of nine private equity funds, representing approximately $12 billion of capital, and has made 120 investments. Kelso has significant experience investing in financial services, having deployed approximately $1.7 billion of equity capital in the sector over the past decade, including nearly $1.0 billion in insurance and reinsurance investments. For more information about Kelso, please visit the firm’s website at www.kelso.com.

About Arch Capital

Arch Capital Group Ltd., a Bermuda-based company with approximately $8.24 billion in capital at September 30, 2016, provides insurance, reinsurance and mortgage insurance on a worldwide basis through its wholly owned subsidiaries.

Cautionary Note Regarding Forward-Looking Statements

Certain information contained in this release constitutes “forward-looking statements,” which can be identified by the use of forward-looking terminology such as “will,” “believe” or other variations thereon or comparable terminology. Due to various risks and uncertainties, actual events or results or the actual performance of the Company may differ materially from those reflected or contemplated in such forward-looking statements. The Company undertakes no obligation to update any such forward-looking statements resulting from any change in facts or circumstances or new developments.

All references to “$” are to U.S. Dollars.

Contacts

Premia Holdings Ltd.
Bill O’Farrell, +1 267 312 1620
or
Scott Maries, +1 441 705 8697

View this news release on Business Wire at: http://www.businesswire.com/news/home/20170109006339/en/Premia-Raises-510-million-Initial-Capital-Leading