Two Bermudian-based reinsurers are among the backers of Dellwood Insurance Group, which has been set up by veterans of the island’s insurance and reinsurance sector.

RenaissanceRe and PartnerRe are behind the new company set up by Michael Price, the former chief underwriting officer at Arch, and Kean Driscoll, formerly the chief executive officer of Validus Re, with more than $250 million in capital.

Mr Price is chief executive officer of the new venture, while Mr Driscoll is president and chief underwriting officer. They are both former executives at AIG.

US-based Dellwood is a nationwide excess and surplus lines insurance holding company dedicated exclusively to wholesale brokers with an emphasis on small and middle enterprise risks.

Other backers include Starr Insurance, Central Insurance, and individual investors including former Everest Re Group president and chief executive officer Dominic Addesso, David Delaney, VJ Dowling, Jim Hays, and principals from Stone Point Capital.

Mr Addesso, Dellwood’s non-executive chairman, said: “Both Michael and Kean have proven track records building profitable underwriting businesses and successfully managing through varying market cycles.

“They are extremely well-respected in the P&C industry and the investor group is excited to back them in this venture.”

Mr Price said: “The P&C industry is at an inflection point, and we are poised to actively participate in the most attractive insurance market conditions in over 20 years.

“Having access to the intellectual and financial firepower of our strategic investors will serve us and our broker partners well as we navigate the challenging E&S marketplace.”

The company said the E&S market has doubled in size since 2018 driven by heightened CAT activity and social and economic inflation.

Mr Driscoll said: “The inflationary elements of the insurance cycle affect all businesses large and small.

“However, the SME segment is particularly challenging for our wholesale partners. Dellwood’s purpose-built underwriting platform will lead with a full suite of insurance products for the SME commercial market.

“We are confident that these capabilities matched with disciplined underwriting will appeal to wholesale brokers, who need alternative approaches, particularly for smaller, hard-to-place risks.”

Mr Price added: “Competing in the SME segment of the E&S market requires rapid response and strong service capabilities.

“Our early investment in technology will streamline the underwriting and claims processes to drive profitable growth, operating efficiencies, exceptional service to our broker partners and customers, and a world-class experience for our colleagues.”