Former Catlin executives launch PE-backed insurer

(Reuters) — Two former senior executives of Lloyd’s of London insurer Catlin Group Ltd. have launched a new insurance firm with $1.8 billion of capital, backed by Canadian private equity firm Onex Corp.

Stephen Catlin, founder of Catlin, and Paul Brand, previously Catlin’s chief underwriting officer, have set up London and Bermuda-based insurer and reinsurer Convex, the company said in a statement on Tuesday.

The launch comes at a time when many insurers have merged due to strong competition. But private equity firms have been attracted to the sector due to its strong returns compared with conventional assets such as bonds.