Starwind launches collateralized liability reinsurer

Starwind Specialty Insurance Services LLC said Thursday it has established a $270 million collateralized reinsurer, backed by a unit of private-equity investor Stone Point Capital LLC, to expand its liability insurance capacity.

Starwind, the program management arm of TIH Insurance Holdings LLC, said Fractal Re Ltd. will provide reinsurance capacity across its liability insurance programs.

State National Cos. Inc., a unit of Markel Group Inc., will be the fronting insurer for the platform, Starwind said in a statement.

Minority investors in Fractal Re include Nationwide Mutual Insurance Co., Enstar Group Ltd., TIH’s investor group and Starwind’s management team.

The multiyear reinsurance agreement is effective Oct. 1, 2024.

As part of the transaction, a subsidiary of Enstar will offer investors in the sidecar the option of a novation transaction to exit the investment after a period of time, Starwind said.

Stone Point Credit, a division of Stone Point Capital, will be the investment manager for Fractal Re.