MultiStrat casualty ILS expansion accelerates with new investor-backed reinsurer and hires

MultiStrat, the specialist underwriter, reinsurance investment facilitator and casualty insurance-linked securities (ILS) company, is accelerating its expansion having secured a new capital investment by a large institutional asset manager in a reinsurance vehicle it will manage and announcing more hires.

MultiStrat has cemented itself a niche role as an expert underwriter of casualty reinsurance risks and providers of investment access points to those institutions seeking casualty ILS market returns.

The latest announcement from the company sees it executing on its plan for sustainable long-term growth, with a new relationship with a $100 billion-plus alternative asset manager that has invested capital into a new reinsurance vehicle that MultiStrat has established and will manage.

The company has signed a definitive agreement with this unnamed asset manager to provide underwriting and liability management services for a casualty reinsurance-focused reinsurer, while Deutsche Bank Securities Inc. acted as the structuring and placement agent on this transaction.

It reflects the growing appetite of large institutions to access insurance-linked returns from along the risk and class curve, with casualty increasingly seen as attractive by asset managers looking to benefit from float opportunities as well as the risk-linked underwriting returns.

The new casualty reinsurance vehicle has been capitalised through an equity investment made by the alternative asset manager.

“This capital investment marks a significant milestone in the development of innovative risk-transfer solutions and reflects our investor’s strategic commitment to building a long-term presence in the casualty (re)insurance sector,” explained Weston Tompkins as Executive Director, Capital Markets, MultiStrat.

Stephen Wollman, Head of US FIC Structuring at Deutsche Bank, commented, “Deutsche Bank was pleased to work with MultiStrat on originating and placing this innovative transaction, which follows a string of successful financing and capital formation assignments that our team has led in the insurance sector over the last few years.”

Philippe Kremer, Head of FIG Solutions at Deutsche Bank, added, “MultiStrat has the ability to create bespoke transactions and insurance liability risk profiles to cater to investors’ needs. It is precisely this flexibility that allowed MultiStrat to secure a capital investment from a large institutional asset manager with over $100bn of AUM, which will act as the capital provider on the transaction and has also curated a liability matching asset portfolio with a focus on private and structured credit assets.”

In addition, MultiStrat also announced two new hires, with Nadia Chychrun joining as Chief of Staff and Group Senior Director of Program Change, and Paul McCabe as Executive Director – Operations (COO), both joining the executive team of the company.

“These developments are further milestones which demonstrate MultiStrat’s continued appetite to source insurance and reinsurance-linked opportunities for private capital clients,” Bob Forness, Chief Executive Officer of MultiStrat said. “We are committed to building out our talent base and expertise in order to meet the growing demand for innovative reinsurance solutions.”

Both will report directly to Forness and help to steer the direction of the company as it continues to expand its casualty reinsurance and ILS business.

Chychrun is located in Bermuda and will help coordinate strategy and oversee high-impact projects at MultiStrat, with a focus on enhancing process improvement and aligning all the company’s departments. She previously worked at The BEST Group in Bermuda, where she was the Head of Finance and Chief Financial Officer. Before that, she held finance, accounting and compliance roles with firms in Toronto, London, and Bermuda, including Details Management, JordanDorsetRyvita, Ideaca Knowledge Services, and London Life Insurance Company and started her career as an Auditor for PricewaterhouseCoopers and Ernst & Young in Bermuda.

McCabe is based in London and will take responsibility for overseeing MultiStrat’s operational functions, including directing finance operations, valuation processes, operational risk management, fund accounting, internal controls, technology integration, and change management. He has more than 20 years of experience and recently worked at ILS manager Securis Investment Partners, where he spent 10 years and most recently served as both Chief Operating Officer and Chief Risk Officer.

“This is an exciting time at MultiStrat as we welcome Nadia and Paul to our executive team,” Forness further stated. “As we continue to add exceptional new talent to our team to meet growth demands, both our new hires bring a wealth of industry experience to their roles in the organization that will invigorate our evolution and transformation.”

“I am thrilled to be joining the MultiStrat team,” said Chychrun. “The pioneering work the company has been doing in the Casualty ILS space has been impressive to watch, and I am looking forward to working with MultiStrat’s executive team to support the company’s continued growth trajectory as they expand their footprint into other lines of business and territories.”

McCabe also commented, “MultiStrat is widely recognized as an innovator in our industry, which makes it a particularly exciting time to join the team. I am eager to oversee the firm’s operations and help drive its growth as it broadens its collateralized reinsurance offerings into new sectors and markets.”

Earlier this year, MultiStrat hired former Securis investor relations employee Weston Tompkins as its new Executive Director of Capital Markets, while back in February it announced Maryam Abdullah being hired as Head of Pricing.