AXA XL now has a new wholly-owned subsidiary within its alternative capital business.
Without disclosing the financial terms, the company said its reinsurance unit has completed the acquisition of all third-party ownership interests in its majority-owned asset management affiliate New Ocean Capital Management Limited. The latter was instrumental in AXA XL partnering with private equity fund Stone Point Capital and Japanese conglomerate Mitsui & Co., Ltd.
Meanwhile New Ocean founding CEO Chris McKeown will continue to serve as an advisor to AXA XL’s alternative capital business for a transitionary period and will also remain as a director of certain funds.
“Alternative capital is a core component of our strategy, as we seek to create strategic partnerships matching the risks we initiate with third-party capital alongside our own,” noted AXA XL chief executive Greg Hendrick. “Our decision to acquire the outstanding shares of New Ocean demonstrates our strategic commitment to the alternative capital space and represents the latest step towards becoming the partner of choice for investors seeking to access (re)insurance risk globally.
“We’d especially like to thank Chris whose dedication and 30 years of experience helped launch and grow New Ocean and bring it to this point where we can start our next chapter in alternative capital management.”
Charles Cooper, head of AXA XL’s global reinsurance operations, said the alternative capital business – led by Daniel Brookman, who came onboard in early 2016 as senior vice president of alternative capital before being promoted to head last year – will offer investors a full suite of underwriting under the consolidated structure.
“As a key source of risk origination for our alternative capital activities lie within our reinsurance operations, Dan will join our global reinsurance leadership team,” added Cooper. “The new alignment will help accelerate our alternative capital activity and provide greater flexibility for our underwriters and ultimately our brokers and clients.”