Platinum’s Morrison returns with start-up Swan Re

A new reinsurer has been formed on Bermuda led by Greg Morrison, the former chief executive of Platinum Underwriters. It will operate through MultiStrat Re, a platform formed by Taussig Capital to help hedge funds and other investors tap into the reinsurance space.

Swan Re, which has been sponsored by Swan Wealth Advisors, has been incorporated, capitalised and licensed as a Class 3A reinsurer by the Bermuda Monetary Authority.

All its reinsurance business will be sourced by MultiStrat Re, a Bermuda special purpose insurer, through a quota share reinsurance agreement. Swan Wealth Advisors will manage Swan Re’s assets using what it calls its Defined Risk Strategy (DRS).

The DRS structured asset management strategy is designed to not lose capital during market downturns.  It focuses on capturing the upside of the market while hedging the downside.

Randy Swan is the chairman of Swan Group Holdings, the parent of Swan Re. He founded Swan Wealth Advisors 16 years ago focusing on the DRS he developed and has grown the business to more than $1 billion in assets under management.

Swan said: "We are pleased to offer investors an opportunity to seek high returns by combining our low risk DRS investment strategy with MultiStrat Re's stable, low volatility reinsurance business."

Its other founding board members include Morrison, who becomes CEO, and Jonathan Dodd, who has previously been the chief financial officer (CFO) of Spencer Capital Holdings and Quanta Capital Holdings, as CFO.

Swan Group Holdings was advised by Taussig Capital and Middlebury Securities.  Joe Taussig, who advised on the formation of both Greenlight Capital Re and Third Point Re, said: “While past performance is no guarantee, Swan Group Holdings will be following the path laid out by Berkshire Hathaway and, more recently, improved by Greenlight Capital Re and Third Point Re, which have delivered superior returns and outperformed Berkshire Hathaway as well as their benchmark funds.”

Taussig added: “Greenlight Re has been in business for nearly 10 years. During that time, Einhorn and Swan’s investment performance have been more or less the same, although Swan’s has been less volatile. As such, Swan Re can afford to leverage its balance sheet more than Greenlight has and it would not be unreasonable to expect Swan’s first 10 years to outperform Greenlight Re’s if Swan can hold form on his past performance.”

Swan Group Holdings is offering its shares to accredited investors with a minimum investment of $1 million. The capital is being raised to fund the operations of Swan Re. Swan Re is the most recent of what is expected to be a number of select participating reinsurers that will be developed on the MultiStrat Re platform.