Starwind Specialty Insurance Services, a subsidiary of TIH, has partnered with Stone Point Credit to launch Fractal Re, a newly formed collateralised reinsurer.
The partnership aims to enhance Starwind’s reinsurance capacity across its diversified casualty programs by leveraging third-party capital.
Fractal Re will enable Starwind to better serve its customers and distribution partners by expanding its underwriting capabilities.
The capital raise for Fractal Re reached $270m in equity, with contributions from institutional investors and industry leaders such as Nationwide, Enstar Group, and State National, as well as the TIH investor group and the Starwind management team.
This marks a significant step in Starwind’s commitment to expanding its capacity via third-party capital.
Additionally, Enstar Group’s subsidiary has entered into an agreement offering sidecar investors an exit option after a set period, through a novation transaction. This is part of Enstar’s Forward Exit Option (FEO) solution, designed to provide finality for third-party insurance-linked securities investors.
In a notable expansion of their strategic partnership, State National will serve as the fronting carrier for Fractal Re. This move aligns with State National’s broader goal of delivering robust reinsurance security, while also ensuring reliable returns for investors.
“The launch of Fractal Re demonstrates Starwind’s ability to meet the needs of our customers and distribution partners by expanding our casualty and specialty capacity,” Starwind CEO Bill Goldstein said.
Matt Freeman, CEO of State National, commented, “We’re delighted to support an innovative securitisation of casualty insurance risk that delivers meaningful reinsurance capacity to Starwind, attractive risk-adjusted returns to investors, and reliable, high-quality reinsurance security to State National.”
Jim Carey, Co-CEO of Stone Point, added, “We believe Stone Point Credit’s experience managing capital for the insurance industry, combined with Starwind’s market leading underwriting, will enable us to generate substantial value for all stakeholders.”
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