NEW YORK–(BUSINESS WIRE)–Aquarian Holdings (“Aquarian”) and Somerset Reinsurance Ltd (“Somerset Re”) today announced that they have entered into a definitive agreement allowing Aquarian to acquire a majority stake in Somerset Re, a leading providers of reinsurance solutions for the US life insurance market. and the annuity market. In addition, the transaction will provide Somerset Re with a substantial amount of immediate and committed new capital to further drive growth, strengthen Somerset Re’s strong market position and provide additional resources to support its strong pipeline of opportunities.
The transaction joins Aquarian with existing strategic investors Hannover Re, the world’s third-largest reinsurer, and Weiss Family Interests, which includes George Weiss, CEO of Weiss Multi-Strategy Advisors LLC and founder of Somerset Re, who will each retain a stake and stake to Somerset Re. Atlas Merchant Capital and several other existing shareholders have agreed to sell their interests to Aquarian. The transaction is expected to close in the third quarter of 2022 and is subject to customary regulatory closing conditions. Additional terms of the transaction were not disclosed.
Somerset Re was founded in 2014 to provide insurers with tailored solutions to help mitigate risk and improve capital efficiency. The reinsurer, which has been backed by strategic investors with extensive experience in the insurance industry since its launch, is rated A- by AM Best and BBB+ by S&P Global. The company, which has grown 93% annually to $5 billion in assets under management as of December 31, 2021, intends to continue its liability-driven approach to provide a strong professional reinsurance option to the market .
“We are delighted to have Somerset Re join the Aquarian platform,” said Rudy Sahay, Founder and Managing Partner of Aquarian. “Since our launch, we have successfully partnered with leading insurers and asset managers to support their strategic growth. We look forward to continuing to grow and scale Somerset Re alongside CEO Jeff Burt and the management team, in partnership with their strong strategic shareholders.
Mr. Burt added, “I am delighted to partner with Aquarian and welcome their strategic investment in our platform as we continue to build on our well-established successes, alongside the continued support of our founder George Weiss and Hannover Re. Aquarian brings highly differentiated asset management capabilities focused on the insurance market that will complement our long-term partnership and solution-focused approach to serving our clients.
Mr. Weiss said: “As CEO of Weiss Multi Strategy Advisers I have been in this industry for 43 years and as Founder of Somerset Re I am absolutely delighted to be partnering with Rudy Sahay and the team. Aquarian. I see great things to come for this combined organization.
Dr. Klaus Miller, Board Member of Hannover Re, added: “We are delighted with the recognition of the success of our current investment and look forward to continuing our successful relationship and growing our collective business in the future. .
Colin Savage, Managing Director and Head of North American Investments for Atlas Merchant Capital, said: “We are very proud to have been part of Somerset’s growth story with Jeff and the team in building a leading life reinsurance franchise over the past six years and wish them every success in the future.
Citi and RBC Capital Markets acted as financial advisors to Aquarian Holdings, with Skadden, Arps, Slate, Meagher & Flom LLP, Walkers (Bermuda) Limited and Arthur Cox LLP acting as legal advisors. Barclays Capital, Inc. acted as lead financial advisor and Crédit Agricole CIB also acted as financial advisor to Somerset Re, Mayer Brown LLP and Conyers Dill & Pearman Limited acting as legal advisors.
About Somerset Re
Somerset Reinsurance Ltd. is a leading provider of reinsurance solutions for the asset-intensive life insurance and annuity business, helping clients manage capital efficiency and improve financial results. Somerset Re’s solutions include programs for new business flows and the management of legacy blocks of life insurance and annuities. For more information, please visit SomersetRe.com.
About Aquarian Holdings
Aquarian Holdings is a diversified holding company with interests in businesses including insurance, asset management, real estate and technology. We draw on our decades of collective experience to deliver debt and equity capital solutions that meet the objectives of our partners and our portfolio companies. For more information, visit www.aquarianlp.com.