Swan Re takes flight

Swan Group Holdings Ltd (“SGHL”) is pleased to announce the launch of its wholly-owned subsidiary, Swan Re Ltd. (“Swan Re”).  Swan Re was recently incorporated, capitalized and licensed as a Class 3A reinsurer by the Bermuda Monetary Authority (“BMA”).  Swan Re was sponsored by Swan Wealth Advisors (“SWA”) of Durango, Colorado.  SWA, through an investment management agreement, will manage the assets of Swan Re utilizing its Defined Risk Strategy (DRS).

The DRS structured asset management strategy is designed to not lose capital during market downturns.  It focuses on capturing the upside of the market while hedging the downside.  This strategy has proven successful generating 9.3% average annual net returns to investors over its 16 year history, while exhibiting only half the volatility of the S&P 500 Index.

All of Swan Re’s reinsurance business will be sourced by MultiStrat Re, a Bermuda special purpose insurer, through a quota share reinsurance agreement alongside other participating reinsurers.  MultiStrat Re is wholly owned by Multi-Strat Holdings, a company incorporated under the laws of Bermuda.

Randy Swan, Chairman of SGHL, noted, “We are pleased to offer investors an opportunity to seek high returns by combining our low risk DRS investment strategy with MultiStrat Re’s stable, low volatility reinsurance business.”

Swan Group Holdings also is pleased to announce its founding Board Members. Mr. Swan will be Chairman of the Board for SGHL. He founded Swan Wealth Advisors 16 years ago focusing on the Defined Risk Strategy he developed, growing SWA to more than $1 billion in assets under management.  Mr. Swan will be joined on the Board by two executive members who are veterans in the Bermuda reinsurance community: Gregory Morrison, who has been named as Chief Executive Officer and Jonathan Dodd as Chief Financial Officer.

SGHL was advised by Taussig Capital, received capital advisory support from Middlebury Securities, and is a Participating Reinsurer on the Multi-Strat Re Ltd. (“MultiStrat Re”) platform.  Joe Taussig, who advised on the formation of both Greenlight Capital Re (GLRE) and Third Point Re (TPRE), noted “While past performance is no guarantee, SGHL will be following the path laid out by Berkshire Hathaway and, more recently, improved by GLRE and TPRE, which have delivered superior returns and outperformed Berkshire Hathaway as well as their benchmark funds”.

Taussig went on to add “Greenlight Re has been in business for nearly 10 years. During that time, Einhorn and Swan’s investment performance have been more or less the same, although Swan’s has been less volatile. As such, Swan Re can afford to leverage its balance sheet more than Greenlight has and it would not be unreasonable to expect Swan first 10 years to outperform Greenlight Re’s first 10 years if Swan can hold form on his past performance.”

SGHL is offering its shares to accredited investors with a minimum investment of $1 million. The capital is being raised to fund the operations of Swan Re.  Swan Re is the most recent of what is expected to be a number of select participating reinsurers that will be developed on the MultiStrat Re platform. Middlebury Securities LLC is managing the investment offering on behalf of SGHL.

Management Team

Chief Executive Officer, Gregory Morrison, Fellow of the Society of Actuaries, has more than 30 years of experience in the insurance and reinsurance industry.  Mr. Morrison served as Chief Executive Officer of Platinum Underwriters Holdings Ltd. (NYSE:PTP), Imagine Group Holdings Ltd., and London Reinsurance Group, Inc.  He was also President of Unum Reinsurance, the reinsurance division of Unum Provident Corporation.  Mr. Morrison currently sits on a number of property casualty and life insurance company boards and their subsidiaries in Bermuda, Florida, Europe and the Caribbean where he frequently acts as chairman and audit committee member. Greg’s broad senior management and board experience are expected to be instrumental to the launch of Swan Re.

Chief Financial Officer, Jonathan Dodd, a Chartered Accountant, has been working in the Bermuda insurance and reinsurance market for 19 years, primarily as a Chief Financial Officer.  Mr. Dodd was CFO of Spencer Capital Holdings, a Puerto Rico domiciled insurer focused on the extended service and warranty insurance for automotive dealers.  At Spencer, he led all finance activities including capital management, letters of credit facilities, investment management, accounting, capital raising, financial reporting and investor relations.  Prior to Spencer, Mr. Dodd was CFO of Quanta Capital Holdings, a specialist reinsurance company domiciled in Bermuda, where he focused on finance, corporate strategy, business planning and capital and financial modeling.  Given Mr. Dodd’s experience with both established and startup publicly traded reinsurance companies, his addition to the management team and board is expected to benefit Swan Re significantly during formative stages.