Jul / 5 / 2016
PEMBROKE, Bermuda–(BUSINESS WIRE)–Harrington Reinsurance Holdings Limited (“Harrington Holdings”), together with its direct, wholly owned subsidiary Harrington Re Ltd. (“Harrington Re” or the “Company”), today announced that it has completed a capital raise of approximately $550 million of equity and $50 million of debt, including a $100 million equity investment by a subsidiary of AXIS Capital Holdings Limited (“AXIS Capital”) (NYSE:AXS) and an approximately $50 million equity investment by affiliates of The Blackstone Group L.P. (“Blackstone”) (NYSE:BX). The Company has been awarded an A- (“Excellent”) financial strength rating by A.M. Best.
A subsidiary of AXIS Capital has been appointed Harrington Re’s exclusive liability manager, responsible for negotiating and sourcing reinsurance business for recommendation to the management of Harrington Re. Blackstone has been appointed Harrington Re’s exclusive investment manager, responsible for managing a multi-asset portfolio of Blackstone alternative investment strategies on behalf of the Company.
Harrington Re’s strategy is to combine a multi-line reinsurance portfolio with a diversified allocation to alternative investment strategies to earn attractive risk-adjusted returns. The Company plans to develop a portfolio that optimizes the risk-reward characteristics of both assets and liabilities, leveraging the respective strengths of AXIS Capital and Blackstone while deploying a disciplined and fully integrated approach to both underwriting and investing.
Bill Fischer, who has over 30 years of industry experience and recently served as Chief Underwriting Officer of AXIS Reinsurance, has been appointed Chief Executive Officer of Harrington Re and will serve as a member of its board of directors. Commenting on Harrington Re’s launch, Mr. Fischer said, “With the market-leading specialty underwriting of AXIS and the proven alternatives expertise of Blackstone, Harrington Re is well-positioned to combine attractive global underwriting opportunities with a diversified portfolio of alternative investments to create value for all stakeholders.”
Albert Benchimol, AXIS Capital’s President and Chief Executive Officer, remarked, “Our relationship with Harrington Re is a key element to our 21st Century approach to capital management whereby we complement our existing balance sheet with a broad range of third-party capital to deliver enhanced capacity, innovation and tailored solutions to our clients and brokers. Harrington Re’s foundation is made even stronger by having Blackstone as the investment manager of its portfolio.”
Commenting on the important role Harrington Re will play in the market, Jay Nichols, CEO of AXIS Reinsurance, said, “Harrington Re is an integral part of our larger alternative capital strategy, which is designed to match the right risk with the right capital. The Company will expand the already broad product offering and capacity of AXIS across medium- to long-tail lines of business to better serve our clients and distribution partners. We look forward to creating value and innovating at the intersection of risk financing and risk transfer.”