Specialty insurer to end partnership with investment manager
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The StarStone Group, a global specialty insurer, said Friday it will discontinue its less than year-old partnership with Securis Investment Partners LLP, an insurance and reinsurance-linked investment manager.
StarStone said in its statement Securis had entered into a new relationship with StarStone at the beginning of the year that allowed Securis to access returns from primary catastrophe-exposed risks through a U.S. domiciled rated platform, writing both nonadmitted personal and commercial lines.
It said the arrangement was structured as a collateralized quote-share reinsurance that allowed Securis to share business underwritten using StarStone U.S. domestic licensed entity.
StarStone said in its statement Friday that the London-based firms’ decision follows a “strategic underwriting review of all StarStone lines of business to ensure that its underwriting portfolio in 2019 aligns with risk appetite.
“As a result, StarStone has concluded it will no longer be able to support Securis’ growth ambitions within the property Excess and Surplus lines segment,” according to the statement. StarStone is part of the Enstar Group Ltd.
The statement said, similarly, Securis’ overall strategy relating to the segment has been under review following its exit from Lloyd’s of London and the discontinuation of a special purpose arrangement at Lloyd’s that was also exposed to property E&S lines.
Securis said in October it is exiting from Lloyd's business because of a lack of profitability.
StarStone Group said in October it named John Hendrickson as its group CEO.
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