W. R. Berkley Corporation Launches Lifson Re

Rhea-AI Summary

W. R. Berkley Corporation (NYSE: WRB) has established Lifson Re Ltd., a special purpose insurer in Bermuda, with over $250 million in equity from global investors, including W. R. Berkley Corporation. The new entity will engage in reinsurance treaties starting January 1, 2021, managing a diverse portfolio alongside traditional reinsurers. This strategic move aims to better manage risk and capital while enhancing partnerships with alternative capital sources and maintaining strong ties with traditional reinsurers.

Positive

• Formation of Lifson Re Ltd. enhances risk management strategies.
• Over $250 million in equity from sophisticated global investors supports financial stability.
• The arrangement diversifies W. R. Berkley's reinsurance portfolio.

Negative

• None.

W. R. Berkley Corporation (NYSE: WRB) today announced the formation of Lifson Re Ltd., a special purpose insurer registered in Bermuda and licensed by the Bermuda Monetary Authority.

Lifson Re has been capitalized with more than $250 million of equity from a small group of sophisticated global investors with long-term investment horizons, including a minority participation by W. R. Berkley Corporation. The new company will participate alongside traditional reinsurers in a broad portfolio of property and casualty reinsurance treaties ceded by W. R. Berkley Corporation’s subsidiaries on a fully collateralized basis beginning January 1, 2021. Lifson Re’s assets will be managed by an affiliate of W. R. Berkley Corporation.

W. Robert Berkley, Jr., president and chief executive officer of W. R. Berkley Corporation, commented, “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. Over the past several years, we have considered a variety of opportunities to partner with alternative capital sources. Lifson Re is a natural fit with our business and complements our strong, 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.”

Founded in 1967, W. R. Berkley Corporation is an insurance holding company that is among the largest commercial lines writers in the United States and operates worldwide in two segments of the property casualty insurance business: Insurance and Reinsurance & Monoline Excess. For further information about W. R. Berkley Corporation, please visit www.berkley.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201228005067/en/

FAQ

What is Lifson Re Ltd. by W. R. Berkley Corporation?

Lifson Re Ltd. is a newly formed special purpose insurer based in Bermuda, licensed to engage in reinsurance treaties.

How much equity has Lifson Re Ltd. been capitalized with?

Lifson Re Ltd. has been capitalized with over $250 million of equity from global investors.

When will Lifson Re Ltd. start participating in reinsurance treaties?

Lifson Re Ltd. will participate in reinsurance treaties beginning January 1, 2021.

What strategic initiative does Lifson Re represent for W. R. Berkley Corporation?

The creation of Lifson Re is part of W. R. Berkley Corporation's strategy to manage risk and capital more efficiently.

How does Lifson Re Ltd. fit with W. R. Berkley Corporation's operations?

Lifson Re Ltd. complements W. R. Berkley Corporation's strong relationships with traditional reinsurers and provides access to third-party capital.