W.R. Berkley creates Bermuda-based special purpose insurer

New unit to participate in reinsuring a broad portfolio of P&C treaties

W.R. Berkley creates Bermuda-based special purpose insurer

Insurance News

By Lyle Adriano

W.R. Berkley Corporation has formed a new “special purpose” insurer registered in Bermuda and licensed by the Bermuda Monetary Authority.

The new Lifson Re has been capitalized with over $250 million of equity from a “small group of sophisticated global investors with long-term investment horizons,” in addition to a minority participation by W.R. Berkley Corporation. The new company will join traditional reinsurers in a broad portfolio of P&C reinsurance treaties ceded by W.R. Berkley Corporation’s subsidiaries on a collateralized basis beginning January 01, 2021.

A company release also noted that Lifson Re’s assets will be managed by an affiliate of W.R. Berkley Corporation.

“The creation of Lifson Re is part of an important strategic initiative to efficiently manage our risk and capital. This venture is a significant step forward in allowing us to partner with knowledgeable third-party capital that has extensive experience in the insurance industry,” said W.R. Berkley Corporation president and CEO W. Robert Berkley, Jr.

The chief executive added that Lifson Re is a natural fit for the company’s business, complementing the corporation’s long-standing relationships with traditional reinsurance partners.

“Through a unique long-term arrangement, Berkley will be the sole source of risk ceded to Lifson Re, providing Lifson Re’s investors with access to an attractive, specialized and diverse book of insurance risk,” Berkley said.

Citing its own data, the National Association of Insurance Commissioners (NAIC) ranked W.R. Berkley as 22nd on its list of America’s top 25 P&C insurance companies for 2019. NAIC said that the company had direct written premiums of $6.3 billion in 2019, and commanded 0.89% market share.

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