Hudson Structured and MultiStrat complete workers' comp deal

Investment manager Hudson Structured Capital Management has invested $20.1 million in preferred shares in a reinsurance vehicle that will assume $35.3 million of seasoned workers’ compensation liabilities.

MultiStrat Advisors and its affiliate the Annapolis Consulting Group arranged the transaction and will also act as its servicer. Hudson Structured, doing business as HSCM Bermuda, worked with MultiStrat and the ultimate cedant to structure the transaction designed to provide an effective run-off management of the cedant’s liabilities and collateral.

The loss fund will be actively managed by Payden & Rygel in an asset-liability strategy to minimize asset risk and generate investment returns, the company said.

Michael Millette, managing partner of Hudson Structured, said: “We are pleased to collaborate with MultiStrat in this transaction. We have studied a series of opportunities together and expect that this will be the first of many that we complete.”

Sean Logan, CEO of ACG, added: “By consulting with the client on their requirements for collateral management and adverse development protection, we structured a solution that met the client’s requirements and HSCM’s return expectations.”

Jim Robinson, CEO of MultiStrat Advisors, stated: “This investment represents the continued expansion of alternative capital through ‘Casualty Linked Accounts,’ allowing segregation of liabilities and direct investment of assets for investors like HSCM.

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