DEAL oF
THE DECADE
Max Capital celebrates its 10th anniversary this year.
Delroy Alexander looks at a mainstay of the Bermuda
landscape and its proposed deal with IPC Holdings.
As Max Capital turns 10 this year, the fast-growing re/insurer is in But now we have expanded significantly in the US and, most
the midst of a proposed merger with IPC Holdings that will vault the recently, at Lloyd’s. We have positioned the company to be able to
combined company into the big league of Bermuda insurers. write insurance or reinsurance virtually anywhere in the world, in
a wide variety of classes. This gives us the ability to operate in the
From its 1999 inception as a relatively small Bermuda reinsurance
marketplace wherever it seems most opportunistic, which changes
company offering structured and alternative risk reinsurance products,
from time to time.”
and utilising an investment strategy that included a significant allocation
to hedge funds, Max has been transformed into a global specialty A far cry from Max’s humble beginnings.
re/insurance company, most notably under the leadership of chairman
In 2000, the then Max Re Capital (the name was changed to Max Capital
and chief executive officer W. Marston “Marty” Becker, who took the
in 2007) commenced underwriting activities, focusing on structured
helm in October 2006.
and alternative risk reinsurance of long-tailed liabilities. The strategy
It is now the centre of a much talked about merger with fellow was to write products with relatively predictable payout patterns, such
reinsurer IPC Holdings. If successful, the share-for-share transaction as annuities, structured settlements, life insurance, disability income,
will vault the new combination into the ranks of the top 10 Bermuda- workers’ compensation and medical malpractice insurance.
based re/insurers, with more than $3.0 billion of equity in a virtually
A series of joint ventures and placements saw the fledgling company
debt-free concern.
expand to writing both insurance and reinsurance by 2003, the year in
“In the last two years, we have really accelerated the growth of which it also launched its Dublin-based European insurance operations,
our underwriting platforms,” said Becker recently. “We had very and consolidated its Bermuda operation under a single roof—Max Re
robust platforms in Bermuda and Dublin, our original two markets. House, the current building overlooking Hamilton Harbour.
Bermuda Re/insurance . June 2009 9
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