BP Makes an Investment in XPT Group
Gambit Re: A Collateralized Reinsurance Vehicle Boosting XPT Group's Growth
Gambit Risk Finance LLC (Gambit Re), a newly formed collateralized reinsurance vehicle, has been launched by executives from Platinum Specialty Underwriters, the underwriting division of XPT Group LLC. The aim is to support selected profitable underwriting programs within Platinum’s portfolio by providing limited risk capital on a fully collateralized basis [1][2][3][4][5].
The capital structure of Gambit Re includes $60 million of preferred equity, with participation from Accord Capital ($45 million), XPT senior management ($10 million), and B.P. Marsh ($5 million) [2][3][4][5]. B.P. Marsh also holds an approximately 8% preferred equity stake in Gambit Re, with an annual preferred return of 8% [2][3][4][5].
Gambit Re's primary role is to support XPT Group LLC’s strategic growth ambitions. It provides risk capital to expand and support established, profitable underwriting programs managed by Platinum Specialty Underwriters, enabling faster scaling of these programs [1][2][3][4]. This capital infusion allows XPT to launch new specialty insurance products and attract underwriting talent, as well as fill gaps in the wider insurance market by supporting third-party business through strategic partnerships, broadening market reach beyond the existing portfolio [1].
The alignment with XPT’s philosophy of backing entrepreneurial management teams with tailored capital solutions further fuels its ambition to build a best-in-class specialty underwriting platform [2]. Operating on a fully collateralized basis, Gambit Re reinforces disciplined underwriting and sustainable growth [1][4].
In return for their investment, B.P. Marsh will receive a preferred equity shareholding of approximately 8%, which carries an 8% preferred annual return. B.P. Marsh has committed a maximum of $5 million to Gambit Re, with $1.875 million to be funded on completion [6]. B.P. Marsh views this investment as an opportunity to support an experienced management team with a track record in the sector, backed by strong investors.
Management and operational services will be provided by Platinum, with reinsurance administration outsourced to Atlantic Security Limited, a Bermuda-based specialist. Gambit Re will initially support five profitable Platinum programmes across its underwriting portfolio, contributing to XPT’s ongoing year of growth [7].
It's worth noting that the Group’s HY results for the six months to 31 July 2024 were not specified in the provided paragraphs. However, the formation of Gambit Re signifies a significant step forward in XPT’s strategic growth plans.
In addition to the formation of Gambit Re, XPT Specialty has also announced the addition of three new team members: Alex Thomas, Cynthia Ann Pompa, and Connor Fritzsche [8]. These new hires are expected to strengthen XPT’s capabilities and further propel its growth trajectory.
References: [1] https://www.xptspecialty.com/news/xpt-specialty-announces-the-formation-of-gambit-risk-finance-llc [2] https://www.xptspecialty.com/news/xpt-specialty-announces-the-formation-of-gambit-risk-finance-llc [3] https://www.xptspecialty.com/news/xpt-specialty-announces-the-formation-of-gambit-risk-finance-llc [4] https://www.xptspecialty.com/news/xpt-specialty-announces-the-formation-of-gambit-risk-finance-llc [5] https://www.xptspecialty.com/news/xpt-specialty-announces-the-formation-of-gambit-risk-finance-llc [6] https://www.bpmarsh.com/news/bp-marsh-partners-plc-invests-in-gambit-risk-finance-llc [7] https://www.xptspecialty.com/news/xpt-specialty-announces-the-addition-of-three-new-team-members [8] https://www.xptspecialty.com/news/xpt-specialty-announces-the-addition-of-three-new-team-members
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