Bermuda-based legacy re/insurer Compre Group Holdings has completed a legacy reinsurance transaction with Accelerant, a data-driven risk exchange platform.
The transaction, which has received approval from the Bermuda Monetary Authority (BMA), was underwritten by Compre’s Bermuda-based reinsurer, Pallas Reinsurance Company Ltd, and will provide approximately $150 million in coverage on loss reserves.
The portfolio involved in the transaction includes a mix of US and European property and casualty liabilities, covering Accelerant’s retention for the 2020 and 2021 underwriting years. Compre has also indicated that it will offer terms for future underwriting years as they mature.
The transaction was brokered by Augment Risk, with legal advice provided by the UK and US teams from Willkie Farr & Gallagher.
Will Bridger (pictured above), CEO of Compre, commented that the transaction demonstrates the company’s ability to create structured reinsurance solutions aligned with Accelerant’s strategic goals. He emphasized the ongoing partnership between the two companies.
Jeff Radke, CEO of Accelerant, also stated that the deal is an important step in the development of their Risk Exchange as they continue to innovate within the insurance industry.
Andrew Matson, CEO of Augment Risk, highlighted the significance of the transaction in establishing long-term retrospective partnerships and underscored the role of bespoke capital solutions within the insurance value chain.
Compre has also recently reported its financial results for 2023, marking the strongest performance in the company’s three-decade history.
Gross insurance reserves under management surged by 112% year-over-year, reaching $1.6 billion by the end of 2023, largely due to newly acquired reserves exceeding $1 billion. Invested assets totaled $2.4 billion, benefiting from locking in investment yields at the peak of the interest rate cycle.
Tangible net asset value increased by 67% to $784 million, and operating profit grew by 15% to $81 million. Profit after tax stood at $279 million, with an adjusted operating return on opening tangible equity of 19.9%.
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