Premia lands 'significant' fresh capital to fund growth with Armour Re deal

Aquiline-led investor group is making a growth equity investment in Premia Holdings as the Bermuda-based run-off specialist enters into an agreement to acquire Armour Re, a property/casualty legacy reinsurer and a wholly-owned subsidiary of Armour Group.

Premia will acquire 100 percent of Armour Re, an Aquiline Capital Partners portfolio company, in an all-share transaction.

Premia is sponsored by re/insurer Arch Capital Group and Kelso & Company, and currently has operations in Bermuda, Europe and the US with over $2 billion of acquired loss reserves since 2017.

The company said the latest equity raise combined with its sidecar formed at the end of 2020 will provide Premia with "significant fresh capital" to execute on opportunities in the fast-growing legacy market.

“We believe this transaction is a major milestone for Premia to further consolidate its position as a leading legacy P&C reinsurer,” said Bill O’Farrell, chief executive officer of Premia. “The Armour acquisition accelerates the build out of our US and European operations.
“Premia is also excited to be partnering with Aquiline, one of the pre-eminent investors in the insurance sector. We look forward to welcoming the staff and our new shareholder into the Premia family.”

In conjunction with the acquisition, an investor group led by PE firm Aquiline will make a growth equity investment in Premia. Aquiline's chief executive Jeff Greenberg said the investment reflects its belief that the P&C legacy sector will continue to be highly attractive.

“We are excited to partner with Bill and the Premia team, who we believe are best-in-class in the P&C legacy market. We are also excited to partner with Kelso and Arch who are well respected insurance industry investors. Our decision to invest in Premia reflects our belief that the P&C legacy sector will continue to be highly attractive,” he said.

Chris Collins, managing director of Kelso & Company, Premia’s majority shareholder, commented: “Bill O’Farrell and team have built Premia into a differentiated, industry leading run-off reinsurer since we founded the company with Arch and management in 2017. The Armour transaction is highly strategic in enhancing Premia’s capabilities and providing additional capital to accelerate growth.

“Premia is well-positioned to capitalize on the attractive opportunity in the P&C run-off market, and we are excited to continue to support Bill and the Premia team while welcoming a new shareholder in Aquiline.”

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