ERS mulls specialty lines and ILS expansion with $350m capital raise

Lloyd's insurer ERS has raised $350 million of capital from private equity investors to accelerate its growth plans and expansion into specialty lines, as it seeks to take advantage of the attractive market conditions.

The capital raise was led by Abry Partners, a Boston-based private equity firm, alongside an Aquiline-led investor group.

In addition to the specialty business written out of Lloyd’s Syndicates 218 and 1856, ERS is planning to launch a Bermuda-based specialty re/insurance vehicle and an insurance-linked securities (ILS) manager, subject to Bermuda Monetary Authority approval.

ERS’ senior management team will be joined by Kevin Kelley as non-executive chairman.

Peter Bilsby, chief executive officer of ERS, said: “Over the past months, we have been able to add Syndicate 1856 to the portfolio and attract some of the leading talent in the industry to drive growth.

"This capital raise will provide further support for our transition into a specialty (re)insurer, driven by an experienced management team, strong underwriting talent and the deployment of technology to enhance the client and broker experience. We look forward to working with Abry and continuing our partnership with Aquiline.”

Brent Stone, partner at Abry, commented: “We have been very impressed with the ERS team and believe it is set to take advantage of the highly attractive market outlook. This is a unique opportunity to support a great company in its next chapter of growth and development and we are excited to make ERS our first investment at the world’s leading insurance market, Lloyd’s. We are equally as excited to be partnering with Aquiline, one of the pre-eminent investors in the insurance sector.”

Jeff Greenberg, chairman and chief executive officer of Aquiline, added: “Aquiline, Abry and management share a clear vision for the future of the company. We are excited to partner with Abry and to support ERS in its growth and initiatives in this next chapter.”

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