Canopius acquires Bermuda reinsurance, ILS firm Multi-Strat

Global specialty re/insurer Canopius Group is acquiring the majority of Bermuda-based specialty reinsurance group Multi-Strat Holdings.

MultiStrat writes both prospective and retrospective casualty reinsurance sourced through select reinsurance intermediaries. The company works with its investment broker dealer partners and places casualty insurance-linked security (ILS) transactions with alternative investors.

MultiStrat’s reinsurance and capital advisory teams operate through both its Bermuda based Class 3A segregated accounts company and insurance agency, and Garden Insurance, its Vermont protected cell company.

Following the deal, MultiStrat will continue to operate autonomously, and will retain its brand.

“We’re very pleased and excited that Bob Forness and the MultiStrat team are joining the Canopius Group," said Michael Watson, chairman and CEO of Canopius. "With a strong track record in the Casualty ILS market MultiStrat is recognised for innovation and building strong partnerships with investors and reinsurers. We believe that the addition of MultiStrat will be highly complementary to our existing ILS operations based in Bermuda. We’re confident that with active support from Canopius, MultiStrat can broaden its capabilities and grow profitably in the future.”

Bob Forness, CEO of MultiStrat, said: “As the market and thought leader in optimizing the transfer of casualty risk to the global capital markets, MultiStrat’s innovative products can now be scaled more rapidly with the support of Canopius’ expertise and resources. Chemistry is important in finding the right fit and I’ve had the fortunate opportunity to work with Michael Watson on two prior occasions. Casualty ILS capacity works best when paired with traditional capacity, blending the strengths of both to deliver cost effective coverage for reinsureds and attractive returns for investor.”