Vantage Group Holdings Ltd, a new Bermudian re/insurance company with $1 billion of private-equity backing, announced its launch this morning.

The company, which describes itself as a “tech-enabled re/insurance company delivering improved efficiency and enhanced analytics” is led by two experienced executives well known to the Bermuda market.

Greg Hendrick, former chief executive of Axa XL, is the new company’s chief executive officer. Dinos Iordanou, retired CEO of Arch Capital Group Ltd, serves as Vantage’s executive chairman.

Vantage, which will be based on the third floor of Chesney House on Pitts Bay Road, is one of the Class of 2020 companies forming on the island to capitalise on rising insurance rates.

The Carlyle Group and Hellman & Friedman, together with management, have invested $1 billion of equity capital in Vantage with the potential to increase their investment as growth opportunities arise.

Mr Hendrick said 2020 has reinforced the riskier nature of our world and the reinsurance markets.

“Risk changes constantly, and we in the insurance industry must demonstrate our ability to evolve with it, to offer clients coverage that meets their current challenges,” Mr Hendrick said.

“To do that, we brought together some of the brightest, most experienced minds in reinsurance to approach the new world of risk in a fresh way, with curiosity at its core and creativity as its engine.

“At Vantage, we will address the risks others avoid with smart technology and robust analytics.”

The company’s subsidiary Vantage Risk Ltd, a Class 4 Bermuda re/insurer, will provide property catastrophe reinsurance, covering predominantly North America, Europe, Japan and Australia, as well as specialty reinsurance across property and casualty classes including marine, energy, aviation, crop, workers’ compensation, property per-risk and mortgage.

Vantage also plans to build out insurance-linked securities capabilities, starting with the development of products to address peak catastrophic risk opportunities.

In addition to Mr Hendrick and Mr Iordanou, the firm’s leadership team includes several career industry executives such as Chris McKeown, chief executive of reinsurance, innovation and ILS, Jack Kuhn, chief executive of insurance, Aurora Swithenbank, chief financial officer, Peter Hahn, chief data and analytics officer, Gail McGiffin, chief information and operations officer effective in January, Bobbi Andersen, general counsel, Nikki Gonzalez, chief talent officer, Peta White, president of Vantage Risk effective in January and Nick Pritchard, head of property catastrophe underwriting.

Laurie Orchard, the chief operating officer and formerly of XL Re, will lead the Bermuda office.

Vantage says it will use technology to underwrite business where existing capacity is shrinking.

Mr Iordanou said: “We knew it was time – time to offer the property and casualty market new insights into the evolving and increasingly complex and very demanding global risk environment.

“Our team at Vantage has the talent, the knowledge, the expertise and the vision to apply all the tools at our disposal to move the insurance industry into the 21st century.”

Brian Schreiber, head of Carlyle Insurance Solutions, said, “Vantage is launching at an opportune time, when the market needs additional risk capacity and knowledgeable underwriters who understand the evolving nature of risk management.”

John Redett, head of Carlyle’s Global Financial Services group, said, “Carlyle is thrilled to partner with an exceptional management team and experienced insurance investors, and we look forward to helping build Vantage into a market-leading franchise.”

David Tunnell, partner at H&F, said: “For the first time since 2001, the global re/insurance markets are clearly demanding fresh capital and fresh thinking. We are excited to partner with Greg and Dinos – whom we have known and admired for decades – and the team they have assembled at Vantage.”

Hunter Philbrick, partner at H&F, added: “As a new, built-for-purpose platform, Vantage will be uniquely positioned to capitalise on the enormous market opportunity and build a long-term competitive advantage by attracting world-class talent and deploying industry-leading technology, data and analytics.”

Carlyle’s equity capital for the investment comes from Carlyle Partners VII, an $18.5 billion fund that focuses on buyout transactions in the US, and Carlyle Global Financial Services Partners III, LP, a dedicated financial services buyout fund.

H&F has deployed capital from Hellman & Friedman Capital Partners IX, a fund with $16.5 billion of committed capital targeting investments in select sectors across North America and Europe.

Vantage has an A- financial strength rating from AM Best.

JP Morgan acted as sole financial adviser to Vantage.

Billions of dollars of new capital has flowed in the insurance industry this year, with much of it coming to Bermuda, amid what industry observers have described as the hardest market in nearly 20 years.

Much of the new money has been raised by existing re/insurers, including Fidelis, RenaissanceRe, Arch Capital and Hiscox. Convex Group, which set up with about $1.7 billion of committed capital last year, raised another $1 billion this year.

New companies setting up shop in Bermuda include Conduit Holdings, which launched a $1.1 billion initial public offering of shares on the London Stock Exchange this week.

Lloyd’s of London insurers Chaucer and Ark are also setting up new Class 4 reinsurers on the island.