LONDON (Reuters) - Two former senior executives of Lloyd’s of London insurer Catlin have launched a new insurance firm with $1.8 billion (£1.4 billion) of capital, backed by Canadian private equity firm Onex.
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.
Lloyd’s insurer Catlin was bought by rival insurer XL in 2015. French insurer AXA bought XL last year.
Catlin will be chairman and chief executive of Convex and Brand will be deputy chief executive. The firm will focus on complex speciality risks such as those offered by the Lloyd’s of London market.
“There is evidence of pricing momentum in many (insurance) classes and we are well equipped to prosper in a challenging market,” Catlin said.
Reporting by Carolyn Cohn, editing by Louise Heavens