Investors including Hannover Re invest as Somerset Re raises $375m

Bermuda-based Somerset Reinsurance has increased its common share capitalisation to $375 million having secured investments from three strategic investors including Hannover Re and a diverse group of high net worth investors.

Somerset Re provides customised risk management solutions to the life insurance and annuity sectors. The company was formerly known as Weisshorn Re, and adopted its new name, along with a new brand identity, following its move from Switzerland to Bermuda.

“With completion of this capital raise, Somerset Re is well positioned to serve the needs of the life insurance industry with reliable, long-term reinsurance solutions in this persistent low interest rate environment,” said Pat Kelleher, the company’s CEO.

Hannover Re has invested in Somerset Re and will collaborate with the company to bring reinsurance structures to the US life and annuity reinsurance market.

Kelleher said: “We are truly fortunate to have a group of investors who have the financial strength, capital markets acumen and long-term focus that can help us execute on our growth strategy.”

Somerset Re has also partnered with Atlas Merchant Capital, a private equity firm specializing to invest in financial services industry.

“Atlas is very pleased to bring its partnership and operational focus to help a very talented management team at Somerset build a market leading reinsurance business”, said David Schamis, Founding Partner of Atlas Merchant Capital.