Swan Group Holdings Launch Swan Re Ltd
Swan Group Holdings Ltd [SGHL] announced the launch of its wholly-owned subsidiary, Swan Re Ltd.
Swan Re was recently incorporated, capitalized and licensed as a Class 3A reinsurer by the Bermuda Monetary Authority. 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,” the company said.
“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 announced 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. platform.
Joe Taussig, who advised on the formation of both Greenlight Capital Re and Third Point Re, 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”.
Mr. 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.
