Hamilton insurance Buys 2 TIG coverage units

Hamilton coverage institution Ltd., the reinsurer that counts Sanford “Sandy” Weill as non-government chairman, obtained two units from Prem Watsa’s Fairfax financial Holdings Ltd. as part of a push into number one coverage.

Hamilton acquired Valiant insurance and Valiant specialty insurance, the Bermuda-based company said nowadays in a announcement that didn’t reveal phrases. TIG insurance, the Fairfax subsidiary that bought the corporations, agreed to take on their liabilities from earlier than the transaction. The deal gives Hamilton a “smooth slate” as it expands past reinsurance, in keeping with the statement.

leader executive Officer Brian Duperreault is searching for to construct Hamilton after taking on the company remaining 12 months with  Sigma Investments LLC and vowing to apply the hedge fund firm’s information with data to help underwrite coverage dangers. Weill, the former head of Citigroup Inc., got here aboard in January. The agency in June employed Bob Deutsch as chief approach officer to guide a diffusion, along with feasible takeovers.

“We’re in each banker’s Rolodex,” Deutsch stated in an interview. “we would simply don't forget different offers which can be additive to the franchise.”

the brand new groups will possibly write a few insurance this 12 months “though it won’t be plenty,” and plan to increase in 2015, he said. they'll be a part of Princeton, New Jersey-based Hamilton u.s.a., in step with the assertion.

 coverage Shift

Reinsurers offer backup coverage for primary carriers. Hedge fund managers have driven into the commercial enterprise searching for tax advantages at the side of top rate greenbacks that they could make investments, using down the price of value of coverage. That has pushed some agencies inclusive of Axis Capital Holdings Ltd. to boost income of number one coverage to business clients. Hamilton additionally plans to extend within the Lloyd’s of London market, Deutsch said.

Hamilton become fashioned via billionaire Steven A. Cohen, who sold the agency after his hedge fund agreed to pay $1.8 billion to settle U.S. costs of insider trading. The reinsurer had greater than $900 million in capital as of Sept. 30, according to the assertion.

Fairfax acquired Valiant coverage as part of its 2011 buy of First Mercury monetary Corp. The unit was in runoff, that means it had stopped selling new regulations, and changed into transferred to the TIG operation, Toronto-primarily based Fairfax stated in its 2012 annual record.