Bluefire Insurance and AXA XL Reinsurance Enter Alternative Capital Reinsurance Transaction

IRVING, Texas, July 6, 2020 /PRNewswire/ -- Bluefire Insurance, a Texas based Managing General Agency, and AXA XL Reinsurance in Bermuda have completed an alternative capital reinsurance transaction, in which Bluefire will assume risk from its personal auto portfolio through a collateralized reinsurance agreement with AXA XL.

AXA XL and Bluefire’s partnership dates back to 2014 and strengthened in 2019 when Bluefire consolidated their carrier assortment and moved their reinsurance buying to a portfolio basis. The transaction represents Bluefire’s first risk taking position on its business, and the first personal auto alternative capital transaction that AXA XL has completed in Bermuda.

“Bluefire has a diverse and stable book of business with significant scale that is delivering consistent and predictable returns to our reinsurance partners,” said Jamie Pooley, Head of Strategy at Bluefire Insurance. “We have been exploring ways to reinsure our own business for some time but casualty quota share reinsurance agreements have an exposure duration which presents capital efficiency challenges. Once we explained our intent to take risk with the team at AXA XL, we collaborated to design a bespoke structure that met both parties’ objectives. We are delighted to have expanded and further aligned our relationship with AXA XL while creating a capital efficient mechanism that captures the results we are producing.”