ERS DGB Limited has announced a US$350 million (around £250 million) capital raise led by Boston-based private equity firm Abry Partners.
In addition to Abry Partners, an investor group led by ERS major shareholder Aquiline Capital Partners will also participate in the capital raise.
Following the capital raise, Kevin Kelley will join ERS’s senior management team as a non-executive chairman.
ERS said that the financing will accelerate its growth strategy and expansion into specialty (re)insurance busines lines – subject to Lloyd’s business plan approval. On top of the specialty business written out of Lloyd’s Syndicates 218 and 1856, ERS will also launch a specialty (re)insurance vehicle in Bermuda, as well as an ILS manager over the coming months, a release said.
“Over the past months, we have been able to add Syndicate 1856 to the portfolio and attract some of the leading talent in the industry to drive growth,” said ERS CEO Peter Bilsby. “This capital raise will provide further support for our transition into a specialty (re)insurer, driven by an experienced management team, strong underwriting talent and the deployment of technology to enhance the client and broker experience.”
“We have been very impressed with the ERS team and believe it is set to take advantage of the highly attractive market outlook,” said Brent Stone, partner at Abry Partners.
Stone added in his statement that the investment is a unique opportunity to support a “great company” like ERS in its next stage of growth; it also marks Abry Partners’ first investment within the Lloyd’s insurance market. He added that Abry Partners looks forward to collaborating with Aquiline.
“Aquiline, Abry and management share a clear vision for the future of the company. We are excited to partner with Abry and to support ERS in its growth and initiatives in this next chapter,” commented Aquiline chairman and CEO Jeff Greenberg.