Clifford Chance

Premia Named the 2017 “Launch of the Year” by Reactions Magazine

For the third time in four years, Reactions magazine awarded a Clifford Chance-led deal one of its top awards. This year, the magazine selected Premia Holdings Ltd. (“Premia”) as its Launch of the Year.

This year’s Reactions award for Premia continues a trend of Clifford Chance’s work being recognized as leading the market in the structuring of new insurance ventures. The launches are distinguished for their unique characteristics; some employ a more flexible investment model that combines a reinsurance business with an alternative investment strategy, while others, such as Premia, focus on untapped areas in the insurance and reinsurance market, such as the property and casualty runoff market.  Clifford Chance has led the way in the inception of these new companies, with completed deals comprising an aggregate value of US$4.4 billion.

Premia is a Bermuda-based company that is backed by private equity firm Kelso & Company (“Kelso”) and insurer Arch Capital Group Ltd. (“Arch”). Premia raised US$510 million in initial capital, including US$100 million from Arch and its co-investors, US$300 million from Kelso and its co-investors, and US$110 million in senior unsecured debt from a leading private equity firm.

Premia’s January 2017 capital raise is notable for being the largest-ever start-up reinsurer dedicated to runoff solutions and for employing an innovative structure that was previously unutilized in the property and casualty runoff market. Upon its launch, Premia was immediately recognized as a significant industry player and is now competing for some of the market’s largest runoff transactions.

Under the leadership of New York Insurance and M&A partner Gary Boss, Clifford Chance broke new ground with the launch of Watford Holdings Ltd. (US$1.13 billion in 2014), followed by Fidelis Insurance Holdings Limited (US$1.5 billion in 2015). Both were recognized as the Best Capital Raising of their respective years by Reactions magazine. In addition to Premia, subsequent launches handled by the Firm include Harrington Reinsurance Holdings Limited (US$600 million in 2016), recognized as the Best Capital Raising of 2017 by Reactions magazine, and KaylaRe Holdings Ltd. (US$620 million in 2016).

In addition to being led by Boss, the Firm’s multidisciplinary team included Tax partner Mike Seaton; Capital Markets partner Per Chilstrom; and associates Dean Agnos, Analisa Dillingham, Kirsten Gaeta, Alan Kravitz, and Andrew Young.

Clifford Chance has continued its market leading presence in insurance start-ups and has worked collaboratively with each of these companies in their formation and capital raise.  Boss and his team are currently advising on several other transactions in this market.

Reactions magazine is a leading global re/insurance publication. Its annual awards recognize transactions that have made a lasting impression on the North American insurance and reinsurance industry.