Premia will provide adverse loss development coverage of up to $400 million in excess of carried net reserves as of March 31, 2017, plus assume an additional $625 million of carried net reserves
HAMILTON, Bermuda–(BUSINESS WIRE)–Premia Holdings Ltd. announced today that one of its wholly-owned subsidiaries, Premia Reinsurance Limited (“Premia Re”), has entered into an agreement to reinsure AmTrust Financial Services, Inc. (“AmTrust”) with respect to its first quarter 2017 and prior net reserves.
Premia Re will assume net reserves of $625 million in excess of approximately $5.96 billion in net reserves and provide $400 million of additional coverage in excess of AmTrust’s net carried reserves of approximately $6.59 billion as of March 31, 2017. Premia Re will post the reinsurance premium as collateral in trust and will provide additional collateral protections to AmTrust in connection with this transaction.
Commenting on the successful transaction, Premia Holdings Ltd. Chief Executive Officer William E. O’Farrell noted, “This significant transaction highlights our ability to quickly and quietly deliver tailored solutions to our clients for large and complex matters. We welcomed the opportunity to work with AmTrust on this important reinsurance agreement and look forward to a successful ongoing relationship with the Company.”
About Premia
Premia Holdings Ltd. is a Bermuda-based reinsurance group focused on reinsuring insurance and reinsurance portfolios and acquiring companies in runoff around the world. Premia currently has operations in Bermuda and the United States. Premia Holdings is majority owned by funds controlled by Kelso & Company and its co-investment partners. Arch Capital Group Ltd., through its subsidiaries, is a minority shareholder in Premia and a strategic reinsurance partner.
Cautionary Statement
The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements. This release or any other written or oral statements made by or on behalf of Premia Holdings Ltd. and its subsidiaries may include forward-looking statements, which reflect our current views with respect to future events and financial performance. All statements other than statements of historical fact included in or incorporated by reference in this release are forward-looking statements.
Forward-looking statements can generally be identified by the use of forward-looking terminology such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe” or “continue” or their negative or variations or similar terminology. Forward-looking statements involve our current assessment of risks and uncertainties. Actual events and results may differ materially from those expressed or implied in these statements.
All subsequent written and oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these cautionary statements. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Contacts
Premia Holdings Ltd.
Scott Maries, 441-278-9176
Chief Financial Officer
smaries@premiareltd.com
View this news release on Business Wire at: https://www.businesswire.com/news/home/20170109006339/en/Premia-Raises-510-million-Initial-Capital-Leading
