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Core Specialty Announces Completion of StarStone U.S. Recapitalization

  • Rebranded Core Specialty positioned to be a market leader in the specialty property & casualty insurance markets
  • Jeff Consolino named CEO and Ed Noonan Executive Chairman; highly respected industry veterans join the Core Specialty Board
  • Pro forma Shareholders’ Equity of over $900 million after capital raise led by Dragoneer, SkyKnight and Aquiline
  • Investment to provide fresh capacity to specialty property & casualty markets in a period of escalating rates

 

CINCINNATI, OH, November 30, 2020 /PRNewswire/ – Core Specialty Insurance Holdings, Inc. (“Core Specialty” or the “Company”) announced today that it has completed the recapitalization of StarStone U.S. Holdings, Inc. (“StarStone U.S.”).  The recapitalization was led by SkyKnight Capital, L.P. (“SkyKnight”), Dragoneer Investment Group (“Dragoneer”) and Aquiline Capital Partners LLC (“Aquiline,” and together with SkyKnight and Dragoneer, the “Investors”).  Enstar Group Limited (NASDAQ:ESGR) (“Enstar”) has received a combination of cash consideration and shares in Core Specialty as part of the recapitalization.

The Recapitalization

The $610 million in new equity capital provided by the Investors, together with the rollover of Enstar’s existing ownership, and an additional equity purchase of over $60 million from management and selected other investors, will increase the equity capitalization of the Company to over $900 million.

After giving effect to the recapitalization, SkyKnight and Dragoneer will each have beneficial ownership of approximately 27%, Enstar 25%, Aquiline 11%, management and Directors 6% and other investors 4%.

Loss Portfolio and Adverse Development Cover

In conjunction with the capital infusion, one of Enstar’s wholly owned subsidiaries has entered into a combination loss portfolio and adverse development cover reinsurance agreement with the Company.

New Management Team and Board of Directors

As part of the capital infusion, Core Specialty has appointed a new management team and Board of Directors.  Jeff Consolino will be President & CEO and Ed Noonan will be Executive Chairman.  The Core Specialty Board of Directors will include Messrs. Noonan and Consolino; Paul O’Shea and Robert Campbell from Enstar; Steve DeCarlo; Dom Addesso; Don Larson; Matthew Ebbel, Managing Partner of SkyKnight; Marc Stad, Managing Partner of Dragoneer; and Chris Watson, Partner of Aquiline.  The additions of Messrs. Addesso and Larson have not been announced previously.  Each of the members of Core Specialty’s Board of Directors have an exceptional track record of building successful businesses.

Jeff Consolino is an accomplished insurance industry leader with more than 28 years of sector experience.  Most recently, Jeff was Executive Vice President, Chief Financial Officer and a Director of American Financial Group, Inc. (“AFG”).  He was previously a founding executive of Validus Holdings, Ltd. (“Validus Group”) where he served as President & Chief Financial Officer and a Director.

Ed Noonan brings more than 40 years of industry experience to the Company.  He served most recently as Chairman and CEO of Validus Group, a position he held from 2005 to 2018.  Under Mr. Noonan’s and Mr. Consolino’s leadership, Validus Group experienced significant growth from its start-up formation.  Validus ultimately was acquired by AIG in 2018 after more than a decade as a leading independent public company with Mr. Noonan as CEO.  Mr. Noonan also served as President and CEO of American Re from 1997 to 2002, after joining the firm in 1983.

Rebranding as Core Specialty

Core Specialty’s vision is to become the leading specialty insurer.  The new name represents the company’s purpose – to be the core, or most important part, of their clients’ businesses, and their commitment as a specialist to niche insurance markets. These foundational elements of the brand, combined with a striking visual expression and vibrant new logo, comprise an identity that conveys a bold energy and an inspired confidence. 

Commenting on the rebranding, Mr. Consolino said “Core Specialty has the expanded capital to take on risk, the underwriting talent in place, a proven and decisive leadership team and a track record of making things happen fast.  Collectively and in each of our specialist niche business units, we intend to operate with strong entrepreneurial spirit and drive, speed, agility, and empowered decision-making.” 

More information about Core Specialty can be found by visiting www.corespecialtyinsurance.com.

 

Achievements Prior to Closing and Additions at Closing

Mr. Consolino joined the Company as a consultant with immediate effect following the June 2020 announcement of the recapitalization.  During this period, the Company has: created an Excess & Surplus Property Division (a sixth

specialty business unit, led by Alison Oliphant); managed the A.M. Best review process leading to Company ratings of A- “Excellent” (developing); received additional equity commitments of $50 million; added two highly qualified Directors; and recruited key executive, underwriting and support roles.  Financial results for the Company have been very strong through the first nine months of 2020.  Adjusted for intercompany cessions, the combined ratio was 94.9% through the nine months of 2020.  Rate increases through the first nine months of 2020 were 8% across the Company’s entire portfolio and 17% excluding workers’ compensation.

Effective with the closing of the recapitalization, Mr. Consolino became President & CEO and Mr. Noonan became Executive Chairman.  Newly-announced additions to the Core Specialty Board include Messrs. Addesso and Larson.

 Mr. Addesso was President and CEO of Everest Re Group before retiring at the end of 2019 and brings more than 41 years of experience in the (re)insurance market.  Mr. Larson is the retired President and Chief Operating Officer of Great American Insurance Company, where he worked for more than 40 years including with Mr. Consolino.  Rob Kuzloski joins Core Specialty as Executive Vice President & General Counsel after previously serving as General Counsel for Validus where he was a key business partner with Messrs. Consolino and Noonan.  William Vens joins Core Specialty as Executive Vice President & Chief Financial Officer after working most recently at AFG with Mr. Consolino and previously as Chief Financial Officer of Protective Insurance Corporation, a publicly traded insurer specializing in transportation and workers’ compensation.

Commentary

“Core Specialty is truly ‘ready to go’, a theme we are emphasizing as part of our Company rebranding.  While others in the market struggle with the uncertainties of catastrophe losses and the ultimate cost of the COVID-19 pandemic or are engaged in the time consuming process of raising capital, obtaining licenses and ratings and hiring qualified staff, we have been executing on our clear business plan since arranging for our capital infusion in early June,” said Mr. Consolino.  “I am delighted and honored to formally become President & CEO of the Company after working with StarStone U.S. over the past six months.  The Company has many talented underwriters and employees and we have had a great response from insureds and their distribution partners.  Premium pricing has only further escalated across our classes of business since June, including commercial property, D&O, excess casualty, marine & aviation and professional liability.  We are more convinced than ever that a specialist insurance company with the right leadership, financial backing, protection from legacy exposures and niche orientation can create significant value in this environment. We’re ready, equipped, and motivated to get the job done, efficiently and professionally, by empowering our expert team to move quickly on behalf of customers and their brokers.”

Mr. Noonan said: “We have assembled a Board comprised of company founders and business builders which we believe is second to none.  I have worked closely with Jeff and many of the Directors for years and believe the mix of their skills and experience will greatly benefit Core Specialty.  We are very pleased to partner with patient, long-term investors Dragoneer and SkyKnight who bring a valuable network across both the technology and insurance industries.  Following the formation and successful sale of Validus, we are also excited that Aquiline has again invested with us.”

Mr. Ebbel said: “We are excited to partner with Jeff, Ed and Enstar to build Core Specialty into an exceptional specialty carrier executing across both admitted and E&S lines of business.  This partnership has been nearly a decade in the making, and we believe this is the ideal time for the Company to execute on an expansion strategy with both a clean balance sheet and fresh capital.”

Mr. Stad said: “At Dragoneer, we focus on partnering with exceptional teams that are building truly differentiated businesses in large markets.  We look forward to working with Jeff and Ed as they build a leading specialty carrier at a time when we see very positive, long-term market trends.  We have been impressed by Jeff and Ed’s track record of operational excellence, orientation towards disciplined underwriting, and usage of both data and technology.”

Dominic Silvester, CEO of Enstar, said: “We are impressed with the actions taken to date and Enstar is committed to realizing Core Specialty’s full potential as a specialty commercial property & casualty insurer.  Enstar will work with the Company, as opportunities warrant, in our ongoing acquisition activities and we are pleased to maintain our significant investment in the Company.  In August, we announced an exchange agreement with Trident V, L.P. and its affiliated funds managed by Stone Point Capital.  In the exchange transaction, Enstar will acquire all the Trident V Funds’ interest in the recapitalized Core Specialty, resulting in Enstar having approximately 25% beneficial ownership of the Company, subject to regulatory approvals and closing conditions.”

Jeff Greenberg, Chairman and CEO of Aquiline, noted: “Today’s dynamic market conditions have created a need for dedicated underwriting capacity across multiple E&S and admitted lines of business.  We witnessed the strength of the Validus management team first-hand and believe Jeff and Ed will build a market leader at Core Specialty.”

 

-Ends-

 

NOTES TO EDITOR

 

About Core Specialty

Core Specialty offers a diversified range of property and casualty insurance products for small to mid-sized businesses.  From eight underwriting offices spanning the U.S. the Company focuses on niche markets, local distribution, and superior underwriting knowledge, offering traditional as well as innovative insurance solutions to meet the needs of its customers and brokers.  Core Specialty is an insurance holding company operating through StarStone Specialty Insurance Company, a U.S. excess and surplus lines insurer, and StarStone National Insurance Company, a U.S. admitted markets insurer.  The Company is rated A- (Excellent) by A.M. Best.  For further information about Core Specialty, please visit www.corespecialtyinsurance.com.

About Enstar Group Limited

Enstar is a NASDAQ-listed leading global insurance group that offers innovative capital release solutions through its network of group companies in Bermuda, the United States, the United Kingdom, Continental Europe, Australia, and other international locations.  A market leader in completing legacy acquisitions, Enstar has acquired over 100 companies and portfolios since its formation in 2001. For further information about Enstar, see www.enstargroup.com.

About SkyKnight Capital, L.P.

Founded in 2015, SkyKnight manages over $1.5 billion in private equity capital on behalf of institutional family offices and leading foundations and endowments.  SkyKnight makes long-term investments into high-quality businesses in acyclical growth sectors alongside exceptional management teams.

www.skyknightcapital.com

About Dragoneer Investment Group

Dragoneer is a growth-oriented investment firm with over $10 billion in long-duration capital from many of the world’s largest endowments, foundations, sovereign wealth funds, allocators, and family offices.  Dragoneer has a history of partnering with management teams in companies characterized by sustainable differentiation and superior economic models.  The firm has a global orientation and invests in market leaders, primarily in the financial services and technology sectors.

https://dragoneer.com/

About Aquiline Capital Partners LLC

Aquiline Capital Partners, founded in 2005, is a private investment firm based in New York and London investing in businesses across the financial services sector in financial technology, insurance, investment management, business services, credit and healthcare.  The firm has $5.3 billion in assets under management as of December 31, 2019.  For more information about Aquiline, its investment professionals, and its portfolio companies, please visit: www.aquiline.com.

Cautionary Statement

This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include statements regarding the intent, belief or current expectations of Core Specialty and its management team. Investors are cautioned that any such forward-looking statements speak only as of the date they are made, are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors. Core Specialty undertakes no obligation to update any written or oral forward-looking statements or publicly announce any updates or revisions to any of the forward-looking statements contained herein, to reflect any change in its expectations with regard thereto or any change in events, conditions, circumstances or assumptions underlying such statements, except as required by law.

Contact:

Sam Reinhardt
Associate Vice President
Prosek Partners
+1 646 818 9244
sreinhardt@prosek.com

StarStone U.S. announces Alison Oliphant as head of newly-formed excess & surplus (E&S) property division

JERSEY CITY, N.J.: August 27, 2020 – StarStone U.S. announced today that Alison Oliphant has joined StarStone U.S. as president of its newly-formed excess & surplus (E&S) property division. Oliphant will be responsible for managing all facets of this business unit, including direct oversight of the underwriting teams dedicated to the E&S property market segment. StarStone U.S. plans to launch this division ahead of the start of the 2021 renewal cycle.

The property division adds to StarStone U.S.’s existing excess casualty, workers’ compensation, management & professional liability, healthcare liability and marine & energy specialty commercial property & casualty insurance divisions.

Commenting on Alison’s addition, incoming CEO Jeff Consolino said, “I am looking forward to working with Alison as we build a market-leading specialty insurance company. Alison is an accomplished insurance executive with a proven track record of building successful property insurance businesses from the ground up. She has spent her career in property and brings extensive experience across underwriting, distribution, and capital management. There is a clear market need for expansion in commercial property as we observe premium pricing increasing and capacity contracting. Alison will lead a team that will continue to build on our strategic and dynamic vision for StarStone U.S.”

Oliphant was most recently with Velocity Risk Underwriters, a division of Nephila Capital, where she served as the head of commercial lines and chief underwriting officer. In this role, she was responsible for setting the overall strategy for the division. Prior to joining Velocity, Oliphant spent the previous eight years with AmWINS serving as both president, special risk underwriters and EVP of AmWINS Brokerage of Alabama. She started her career at CRC Insurance Services working her way to senior property broker prior to her departure.

About StarStone U.S.

StarStone U.S. offers a diversified range of property and casualty insurance products for small to mid-sized businesses. From eight underwriting offices spanning the U.S., StarStone U.S. focuses on niche markets, local distribution, and superior underwriting knowledge, offering traditional as well as innovative insurance solutions to meet the needs of its customers and brokers. StarStone U.S. is an insurance holding company operating through StarStone Specialty Insurance Company, a U.S. excess and surplus lines insurer, and StarStone National Insurance Company, a U.S. admitted markets insurer. StarStone is rated A- (Excellent) by A.M. Best. For further information about StarStone U.S., please visit www.starstone.com/u-s-overview/.

Enstar Announces Recapitalization of StarStone U.S. with New Leadership and Significant Investment led by SkyKnight Capital, Dragoneer Investment Group and Aquiline Capital Partners

June 10, 2020

  • StarStone U.S. positioned to be a market leader in the specialty property & casualty insurance markets#
  • Jeff Consolino to be named CEO and Ed Noonan Executive Chairman
  • Dragoneer, SkyKnight and Aquiline’s investment to provide fresh capacity to specialty property & casualty
    markets, including E&S property

HAMILTON, Bermuda, June 10, 2020 (GLOBE NEWSWIRE) — Enstar Group Limited (NASDAQ:ESGR) (“Enstar”) announced today that it has agreed to a recapitalization of StarStone U.S. Holdings, Inc. (“StarStone U.S.” or the “Company”) led by SkyKnight Capital, L.P. (“SkyKnight”), Dragoneer Investment Group (“Dragoneer”) and Aquiline Capital Partners LLC (“Aquiline,” and together with SkyKnight and Dragoneer, the “Investors”). The Investors have committed $610 million in new equity capital which, together with the rollover of Enstar’s existing ownership, and an additional equity
commitment of over $20 million from management, will increase the equity capitalization of StarStone U.S. to over $850 million. Enstar will receive a combination of cash consideration and shares in the recapitalized StarStone U.S, valued at a modest premium to book value.

As part of the capital infusion, a new management team and Board of Directors will be appointed to StarStone U.S. Jeff Consolino will be CEO and Ed Noonan will be Executive Chairman. The new Board of Directors will include Messrs. Noonan and Consolino; Paul O’Shea and Robert Campbell from Enstar; Steve DeCarlo; Matthew Ebbel, Managing Partner of SkyKnight; Marc Stad, Managing Partner of Dragoneer; and Chris Watson, Partner of
Aquiline.

In conjunction with the capital infusion, one of Enstar’s wholly owned subsidiaries will enter into a combination loss portfolio and adverse development cover reinsurance agreement with StarStone U.S. The recapitalization is expected to close in the second half of 2020 after obtaining customary regulatory approvals.

Dominic Silvester, CEO of Enstar, said: “This is a pivotal moment for StarStone U.S. as we reposition the Company towards specialty E&S growth. In partnership with experienced investors and a talented management team, which have built and led winning organizations, Enstar is committed to realizing StarStone U.S.’ full potential as a specialty commercial property & casualty insurer. StarStone U.S. will work with Enstar, as opportunities warrant, in our ongoing acquisition activities.”

Jeff Consolino is an experienced insurance industry leader with over 28 years of industry experience. Most recently, Jeff was Executive Vice President, Chief Financial Officer and a Director of American Financial Group, Inc. He was previously a founding executive of Validus Holdings, Ltd. (“Validus Group”) where he served as President and Chief Financial Officer.

“I am delighted and honored to take on the role of CEO of StarStone U.S.,” said Mr. Consolino. “I am looking forward to working with the Company’s many talented underwriters, employees, and distribution partners as well as the reconstituted Board of Directors to build a market leading specialty insurance company. We observe premium pricing increasing and capacity contracting across multiple classes of business including commercial property, D&O, excess casualty, marine & aviation and professional liability. Social inflation and natural catastrophe losses, including floods and
wildfires, have also added to market rate momentum. In addition, the COVID-19 pandemic has led to market dislocation and additional capital need. We believe a specialist insurance company with the right leadership, financial backing, protection from legacy exposures and niche orientation can create significant value in this environment.”

Ed Noonan brings more than 40 years of industry experience to the Company. He served most recently as Chairman and CEO of Validus Group, a position he held from 2005 to 2018. Under Mr. Noonan’s leadership, Validus Group experienced significant growth, and ultimately was acquired by AIG in 2018 after more than a decade as a leading independent public company. Mr. Noonan also served as President and CEO of American Re from 1997 to 2002, after joining the firm in 1983. A recognized market leader, Mr. Noonan brings vast expertise to the position of Executive Chairman.

Mr. Noonan said: “Having had the chance to work with the StarStone U.S. team, I am really pleased to have the opportunity to help them build on the excellent work they have done. We have assembled a Board comprised of company founders and business builders which we believe is second to none. I have worked closely with Jeff and many of the directors for years and believe the mix of their skills and experience will greatly benefit the development of the enhanced StarStone U.S. business plan. We are very pleased to have the opportunity to partner with patient, long-term investors Dragoneer and SkyKnight who bring a valuable network across both the technology and insurance industries. Following the formation and successful sale of Validus, we are also excited that Aquiline will again invest with us.”

Mr. Ebbel said: “We are excited to partner with Jeff, Ed, Steve, and Enstar to build StarStone U.S. into an exceptional specialty carrier executing across both admitted and E&S lines of business. This partnership has been nearly a decade in the making, and we believe this is the ideal time for StarStone U.S. to execute on an expansion strategy with both a clean balance sheet and fresh capital.”

Mr. Stad said: “At Dragoneer, we focus on partnering with exceptional teams that are building truly differentiated businesses in large markets. We look forward to working with Jeff and Ed as they build a leading specialty carrier at a time when we see very positive, long-term market trends. We have been impressed by Jeff and Ed’s track record of operational excellence, orientation towards disciplined underwriting, and usage of both data and
technology.”

Jeff Greenberg, Chairman and CEO of Aquiline, said: “Today’s dynamic market conditions have created a need for dedicated underwriting capacity across multiple E&S and admitted lines of business. We witnessed the strength of the Validus management team first-hand and believe Jeff and Ed will build a market leader at StarStone.”

Enstar today also announced that StarStone International has contributed its renewal rights to Atrium Underwriters Limited, which manages Lloyd’s Syndicate 609. International business not assumed by Atrium will be placed into an orderly run-off.

With the signing of the transaction, John Hendrickson stepped down from his role as StarStone Group CEO. Mr. Silvester commented, “I would like to thank John for his significant contribution to StarStone, and we all wish him well with his future endeavors.”

StarStone U.S.
StarStone U.S. offers a diversified range of property and casualty insurance products for small to mid-sized businesses. From eight underwriting offices spanning the U.S., StarStone U.S. focuses on niche markets, local distribution, and superior underwriting knowledge, offering traditional as well as innovative insurance solutions to meet the needs of its customers and brokers. StarStone U.S. is an insurance holding company operating through
StarStone Specialty Insurance Company, a U.S. excess and surplus lines insurer, and StarStone National Insurance Company, a U.S. admitted markets insurer. StarStone is rated A- (Excellent) by A.M. Best.

Enstar Group Limited
Enstar is a multi-faceted insurance group, with approximately $19.1 billion in assets, that offers innovative capital release solutions and specialty underwriting capabilities through its network of group companies in Bermuda, the United States, the United Kingdom, Continental Europe, Australia, and other international locations. Enstar is a market leader in completing legacy acquisitions, having acquired approximately 100 companies and portfolios since its formation in 2001. Enstar Group includes the StarStone group of companies, an A- rated global specialty insurance group with
multiple global underwriting platforms, and the Atrium group of companies, which manage and underwrite specialist insurance and reinsurance business for Lloyd’s Syndicate 609. For further information about Enstar, see www.enstargroup.com.

SkyKnight Capital, L.P.
Founded in 2015, SkyKnight manages over $1 billion in private equity capital on behalf of institutional family offices and leading foundations and endowments. SkyKnight makes long-term investments into high-quality businesses in acyclical growth sectors alongside exceptional management teams.
www.skyknightcapital.com

Dragoneer Investment Group
Dragoneer is a growth-oriented investment firm with over $10 billion in long-duration capital from many of the world’s largest endowments, foundations, sovereign wealth funds, allocators, and family offices. Dragoneer has a history of partnering with management teams in companies characterized by sustainable differentiation and superior economic models. The firm has a global orientation and invests in market leaders, primarily in the financial services and technology sectors.
https://dragoneer.com/

Aquiline Capital Partners LLC
Aquiline Capital Partners, founded in 2005, is a private investment firm based in New York and London investing in businesses across the financial services sector in financial technology, insurance, investment management, business services, credit and healthcare. The firm has $5.3 billion in assets under management as of December 31, 2019. For more information about Aquiline, its investment professionals, and its portfolio companies,
please visit: www.aquiline.com.

Contact: Enstar Communications
Telephone: +1 (441) 292-3645

StarStone sets out temporary ‘work from home’ Business Continuity Plan

LONDON: 16 March 2020 – StarStone has set out a temporary ‘work from home’ Business Continuity Plan from Tuesday 17 March across a number of our global offices. This is in light of recent developments with the Coronavirus (COVID-19) and government health advice.

While our offices are closed, StarStone is very much open for business. As well as protecting the health and wellbeing of our employees, we believe that this will best enable us to continue to offer our brokers and clients our usual business offering.
We look forward to continue to trade, so please reach out to us via mobile and email. A list of our global underwriting contacts can be found here.

Business continuity testing has been carried out thoroughly and all StarStone employees are able to work remotely. Minimal disruption is therefore anticipated. Our offices will reopen in line with advice from government and the relevant health authorities.

LIST OF STARSTONE GLOBAL OFFICE CLOSURES (Updated 31 March)

• Alpharetta
• Brussels
• Cologne
• Columbia
• Chicago
• Jersey City
• London
• Milan
• Naples
• New York
• Orange
• Paris
• Rotterdam
• Schaan
• Seattle
• St. Pete

We will continue to monitor the evolving situation and will provide updates as needed.

ABOUT STARSTONE
StarStone is an international, A- rated insurance group with five wholly owned insurance platforms, including Lloyd’s Syndicate 1301. StarStone underwrites business across the property, specialty and casualty risk classes from operations in London, Continental Europe and the US. StarStone is owned by Enstar Group Limited, the Trident V funds managed by Stone Point Capital LLC and Dowling Capital Partners I, L.P. For further information about StarStone, see www.starstone.com  

-Ends-

CONTACT:
Jenna Kerr
Head of Communications
T: +44 (0)203 2068251
E: JENNA.KERR@STARSTONE.COM

Gordon Walters

Gordon was appointed Group Chief Operating Officer in March 2019 to oversee StarStone’s operations and IT capabilities. He initially joined StarStone in December 2018 as Group Chief Information Officer. Prior to this, he served as CIO of Towergate, where he delivered an award-winning transformational change across IT. He has 28 years’ experience in running major change initiatives, both as a partner in Accenture and Deloitte and as COO in Lloyds Corporate Bank.

Henry Gillingham joins StarStone as head of War & Terrorism

LONDON: 17 October 2019 – StarStone, the global specialty insurer, today announces the appointment of Henry Gillingham as head of war & terrorism in its crisis management division, led by Simon Low, head of specialty. Gillingham, who will be based in London, will join in the first half of 2020, once his contractual obligations have been fulfilled.

Gillingham joins from Talbot Underwriting, where he most recently served as a senior terrorism, political violence and war underwriter. He has more than 15 years of experience in the insurance industry and began his underwriting career at Talbot in February 2004 as a hull & war underwriter.

Chris Rash, StarStone International CEO said: “War and terrorism cover is a core component of our maturing crisis management portfolio, and we are fortunate to attract someone of Henry’s calibre. His deep sector expertise perfectly matches our ambition to develop sophisticated specialty products built on experience and strong relationships.”

Gillingham added: “StarStone has a well-regarded war and terrorism capability, with a strong track record of managing this niche class of business. I look forward to working with Simon Low and the team to develop the portfolio and client proposition further.” 

ABOUT STARSTONE

StarStone is an international, A- rated insurance group with five wholly owned insurance platforms, including Lloyd’s Syndicate 1301. StarStone underwrites business across the property, specialty and casualty risk classes from operations in London, Continental Europe and the US. StarStone is owned by Enstar Group Limited, the Trident V funds managed by Stone Point Capital LLC and Dowling Capital Partners I, L.P. For further information about StarStone, see www.starstone.com

 

CONTACT:

Jenna Kerr
Head of Communications
T: +44 (0)203 2068251
E: Jenna.kerr@enstargroup.com

StarStone Machine Learning Initiative Selected by 50 Insurer CIOs for Novarica Research Council Impact Award

June 25, 2019 (BOSTON) — StarStone, the global specialty insurer, will receive an Impact Award from the Novarica Insurance Technology Research Council, a peer community of hundreds of insurance industry CIOs. Fifty CIO council members reviewed dozens of case studies to select the winners for the 8th annual awards.

StarStone implemented a machine learning platform to identify misclassified casualty risks from portal submissions. Developed over four months and integrated in less than two, the models improved underwriting efficiency and loss ratios while maintaining a Net Promoter Score of 92.8%.

“StarStone’s machine learning initiative is a great example of the immediate value that insurers are driving with artificial intelligence, says Matthew Josefowicz, President/CEO of Novarica and moderator of the Council.”

“StarStone’s commitment to client-centric, smart and streamlined technological solutions to enable efficient and effective underwriting underpins our Artificial Intelligence function,” says Kardiner Cadet, SVP Head of eCommerce at StarStone.  “Our machine learning platform was developed in tandem with Intellect SEEC and Duck Creek Technologies, and has been key to overcoming the data veracity and risk classification challenges that are intrinsic in transacting business via an online portal.”

StarStone’s case study, along with case studies of seven other winners, and more than 25 additional cases considered for Impact Awards, was published this week in Novarica’s 8th Annual Best Practices Case Study Compendium, online at https://novarica.com/compendium2019/. Novarica has published more than 200 case studies through this program since 2012.

 

About the Novarica Impact Awards

The Novarica Research Council Impact Awards are the largest purely peer-juried awards in insurance technology. Council members vote annually to recognize the efforts of their peers to use technology to drive business value in digital, data/analytics, core systems, and IT operations. No vendors, consultants, journalists, or members of the Novarica team participate in the selection committee, making the Novarica Impact Awards distinctive in being a purely peer-juried award.

The Novarica Insurance Technology Research Council is a free, moderated, knowledge-sharing community of more than 300 insurer CIOs and senior executives. In addition to recognizing successful initiatives through the Impact Awards, members participate in anonymized studies and private, vendor-free events. More information at https://novarica.com/council/

The Council is managed by Novarica, a research and advisory firm that helps more than 100 insurers make better decisions about technology projects and strategy through published research, advisory services, and consulting on IT strategy, benchmarking, project assurance, capability and organizational assessments, and vendor selection. https://novarica.com/

ABOUT STARSTONE

StarStone is an international, A- rated insurance group with six wholly owned insurance platforms, including Lloyd’s Syndicate 1301. StarStone underwrites business across the Property, Specialty and Casualty risk classes from operations in London, Continental Europe and the US. StarStone is owned by Enstar Group Limited, the Trident V funds managed by Stone Point Capital LLC and Dowling Capital Partners I, L.P. For further information about StarStone, see www.starstone.com.

 

Press Contact

Victoria Spitz

media@novarica.com

617-897-1921

Rachel Delhaise

Rachel was appointed Chief Risk Officer of StarStone in January 2019. Prior to this, she was Group Head of Risk. She joined the company in 2014 to develop the risk management practice.  She previously served as Managing Director of GC Securities (Guy Carpenter) following a long career at GC/Marsh focused on structuring and arranging reinsurance transactions for effective risk mitigation and capital management, ERM advisory and Insurance Linked Securities.

StarStone Group Appoints Noonan as Chairman and Sanford as President

LONDON: 08 April 2019 – StarStone, the global specialty insurer, today announces several appointments to its global Leadership team.

• Ed Noonan has agreed to join as Chairman of StarStone Group
• Dick Sanford joins as President of StarStone Group
• Chris Rash promoted to CEO of StarStone International and Deputy Group CEO

Noonan brings more than 30 years of industry experience to StarStone. He served most recently as Chairman and CEO of Validus Group, a position he held from 2005 to 2018. Under Noonan’s leadership, Validus Group experienced significant success and growth, and ultimately was acquired by AIG in 2018. Noonan was President and CEO of American Re from 1997 to 2002, after joining the firm in 1983. Prior to that, he worked at Swiss Re from 1979 to 1983. A recognised market leader, Noonan brings vast expertise to the position of Chairman.

Sanford, who will oversee StarStone’s global underwriting and reinsurance strategy, was previously the Chairman and President of PartnerRe US, Head of P&C North America. He has 35 years of insurance-market experience and began his career as a casualty underwriter at AIG in 1984. He has since held a succession of senior roles including, Executive Vice President, TIG Re/Odyssey America Reinsurance and Vice President, Cologne Reinsurance Company of America, eventually joining PartnerRe in 2000.

Rash, who joined StarStone in August 2018, will lead StarStone’s international business, and operational strategy at Group level. Rash has over 20 years of industry experience, having held numerous financial and operational leadership positions, including 15 years at RSA, and as Group CFO at MS Amlin.

In a joint statement, Enstar and Stone Point, said: “The experience that Ed and Dick bring to StarStone is considerable. Their appointments demonstrate our collective investment and commitment in realising StarStone’s ambitions, and we are very pleased to welcome them to the Group.”

John Hendrickson, Group Chief Executive Officer, StarStone, added: “This is a pivotal moment for StarStone. As we reposition StarStone to deliver profitable growth, Ed and Dick bring a wealth of knowledge. Their respective contribution, together with Chris’s financial and operational expertise, will prove invaluable as we continue to provide highly professional, bespoke specialty solutions to our clients, locally and globally.

Agile Appointed as StarStone Partner Across Australasia

Agile Appointed as StarStone Partner Across Australasia

AUSTRALIA: 12 February 2019 – Agile Underwriting Services Pty Ltd (“Agile”), the InsureTech-driven underwriting agency, today announced that it has been appointed as a representative agent for global specialty insurer, StarStone in Australia and New Zealand.

Agile has been a strategic partner since StarStone launched its Australian underwriting capability in 2016.  The appointment, which follows a strategic review by StarStone, will see Agile represent StarStone across the full range of specialty classes provided by Syndicate 1301.

Agile, with its operations in Sydney, Melbourne, Brisbane and Christchurch, New Zealand, already underwrites Accident and Health, Aviation, Cargo, Cyber, Financial Lines, Marine Hull and Marine Liability as a Lloyd’s coverholder.

Robin Barham, who has served as StarStone Australia’s managing director since its establishment, is also the founder and CEO of Agile.  Mr. Barham will remain at Agile’s helm, responsible for developing new business activity under a new facility managed by Agile, which will allow continued access to StarStone’s underwriting expertise, following the closure of the StarStone Australia office.

Barham said: “StarStone’s retention of Agile highlights the ongoing benefits for both businesses and our customers of our existing relationship. The partnership will ensure customers retain access to StarStone’s capacity and expertise, StarStone will gain more efficient access to Australian customers, while Agile will continue to benefit from working with a global insurer.”

David Message, StarStone’s Group CUO, said: “As StarStone continues its strategy to reposition its operations, we are looking to develop long-term partnerships in key geographies to enhance our global reach. The underwriting team at Agile already has close relationships with our international underwriting teams and is well-placed to assist us in developing our client proposition in the region.” 

 

elseco Acquires MGA Malakite and Zurich-based Airlines & Products Portfolio from StarStone

LONDON: 31st January 2019 – elseco, the high-tech specialty underwriting platform, has entered into an agreement with global specialty insurer StarStone to acquire its Dubai-based MGA, Malakite Underwriting Partners Ltd., and the renewal rights to StarStone’s Zurich-based airlines & products portfolio.

Under a new strategic partnership arrangement, StarStone will continue to provide underwriting capacity to Malakite and the airlines & products book through StarStone Insurance SE, its European platform. To extend support across all elseco specialty lines, including space, aviation, and energy, StarStone will front for selected third-party capacity providers.

StarStone’s Zurich airlines & product team, led by head of aviation Richard Etridge, and Malakite’s managing partner, Giles Hussey, will move to elseco as part of the agreement. Both will continue to write their existing portfolios under the elseco banner, and as part of the transaction, elseco will set up a presence in Zurich.

The entire transaction is expected to complete in Q1 2019, subject to relevant regulatory approvals.

Laurent Lemaire, Founder & CEO of elseco, said: “This signals the start of an exciting partnership with StarStone. There are considerable synergies between our companies, and with this deal all clients will benefit from our extensive in-house capabilities, technology-driven model and broad pool of capacity providers in specialty lines. I look forward to welcoming Giles, Richard and their teams on board.”

David Message, StarStone’s Group Chief Underwriting Officer, added:

“StarStone is undergoing a repositioning of our airlines & products and Middle Eastern business to deliver the very best in customer service and enhance our capabilities in these areas. This new strategic partnership with elseco allows us to leverage elseco’s established market position and strengthen our offering while creating value.”

Important Notice For Policyholders in Christian County Illinois

To implement the requirements of Company Bulletin 2018-12 issued by the Illinois Department of Insurance (DOI), StarStone is taking the following actions in Christian County, Illinois due to significant storms in November 2018.

Moratorium on cancellations and nonrenewals. For any cancellation or nonrenewal notice issued on or after November 23, 2018, or any in-force policy issued to an affected policyholder and/or property, StarStone is withdrawing all cancellations and nonrenewals.  In addition, StarStone will not be issuing any new cancellations or nonrenewal notices to affected policyholders and/or property until January 23, 2019.

Other insurance-related time-period extensions. StarStone is granting affected policyholders a 60 day extension of any and all policy provisions or other requirements that impose a time limit for an insured or claimant to perform any act, including the submission of a claim or proof of loss, reporting of information, submission of bills, or payment of funds. The extension is from the last date allowed or required under the terms of the contract or as required by StarStone.

Time-period extension for repairs. StarStone is providing consumers with a 60 day  extension in the event that repairs on affected property cannot be completed within the time period required under any policy, or within the 90-day time period for repairs prior to termination due to conditions of the property [215 ILCS 5/143.27].

Cancellation or nonrenewal respecting affected property. StarStone  will not cancel or non-renew an insurance policy for a property affected by the storm because of an “increase in the risk originally accepted [215 ILCS 5/143.21 and 143.21.1] or because of where the property  is located. [215 ILCS 5/155.22].

The Illinois Department of Insurance (“DOI”) is available for complaints regarding any disaster-related dispute or issue by calling the DOI’s toll-free complaint hotline at 1-866-445-5364, or by filing a complaint online at: https://mc.insurance.illinois.gov/messagecenter.nsf