HSCM Bermuda acquires majority of windstorm specialist Weston

Investment manager Hudson Structured Capital Management (HSCM Bermuda) is expected to take majority control of windstorm focused insurance specialist Weston Insurance Company (WIHC).

HSCM Bermuda has been a long-term investor in Weston Insurance, which recently announced a change in control. WIHC is the parent of insurance carriers Weston Insurance Company and the recently acquired Anchor Specialty Insurance Company.

Weston recently implemented a capital restructuring plan aimed at significantly reducing its group leverage and improving group balance sheet strength. The group's other subsidiaries that are also likely to benefit from the plan include managing general agency Weston Insurance Management.

Rating agency Demotech has assigned financial stability ratings (FSRs) of A to Weston and Anchor Specialty Insurance Company. The company worked closely with the agency to shape the proposed capital restructuring to assuage any concerns regarding increased levels of holding company leverage used to finance the recent acquisition and recapitalization of Anchor Specialty by WIHC.

Joseph Petrelli, president and co-founder, Demotech, commented: “Michael Millette and HSCM Bermuda’s clients assuming majority control of the holding company to provide oversight and guidance to WIHC’s insurance company subsidiaries is a game changer. The operating subsidiaries were sound and now the holding company is catching up.”