B.P.Marsh & Partners Plc, the early stage financial service private equity investor, has made an investment into a new collateralised reinsurance vehicle named Gambit Re that will provide capacity to support underwriting programs of one of its investee companies, XPT Group.Gambit Risk Finance LLC (Gambit Re) is a newly formed reinsurance vehicle that will support selected XPT underwriting programmes, that are written by XPT’s Platinum Specialty Underwriters unit.Operating on a fully collateralised basis, Gambit Re has also received investments from US-based alternative lending and capital advisory firm Accord Capital Investments and RSP, which is a vehicle formed by XPT senior management.

Accord Capital is the largest investor, putting up $45 million into Gambit Re’s preferred equity, while RSP invested $10 million and B.P.Marsh $5 million.Gambit Re will provide limited risk capital to selected underwriting programmes within Platinum’s insurance portfolio, supporting the expansion of XPT’s underwriting arm.

B.P.Marsh said that $1.875 million of the maximum committed $5 million will be funded on completion, while in return the investor will receive a preferred equity shareholding of c.8%, which carries an 8% preferred annual return.

Gambit Re will provide reinsurance capital to support five profitable Platinum programmes across its underwriting portfolio, B.P.Marsh explained, adding that it expects the vehicle to deliver “a strong risk-adjusted return, underpinned by Platinum’s historical underwriting discipline.” B.P.Marsh said this is an opportunity to support one of its experienced management teams with a track-record in the sector, with the backing of strong investors.

“We are confident that Gambit Re can deliver long term returns to our shareholders, further building on our ability to source and make unique investment opportunities in the insurance sector, alongside our primary focus on insurance distribution investments,” the company stated.Dan Topping, Chief Investment Officer of B.P.Marsh, said, “This investment is a natural extension of our long-standing partnership with XPT.

Gambit Re enables XPT to demonstrate alignment with its carrier partners and expand its Platinum underwriting footprint with greater flexibility.“The initiative aligns with our approach of backing entrepreneurial management teams with capital solutions tailored to their growth ambitions.We are pleased to continue supporting the XPT team in building a best-in-class specialty platform.” Tom Ruggieri, CEO of XPT, commented, “We’re delighted to have B.P.

Marsh’s continued support as we execute this strategic initiative to strengthen XPT’s long-term growth.“Gambit Re allows us to demonstrate conviction in our Platinum underwriting programs and provide our partners with added confidence through aligned capital.The initiative reflects our commitment to innovation and our focus on building a sustainable, high-performing specialty platform.

We value the partnership with B.P.Marsh and are excited to move forward together.” Gambit Re will act as a source of dedicated efficient reinsurance capital to support Platinum’s underwriting programmes, while enabling XPT’s backers to double-down on their commitment to the company and fund its growth, plus delivering them a source of reinsurance-linked returns at the same time.Establishing structures like this, that operate akin to collateralised reinsurers or sidecars for an underwriting entity or partner, helps B.P.

Marsh as an investor drive the growth of one of its investee firms, through the use of efficient capital market structures and investor-backed reinsurance capacity..All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance can be accessed online.Our can be subscribed to using the typical podcast services providers, including Apple, Google, Spotify and more.