Caisse de dépôt et placement du Québec, or CDPQ, and the Ontario Teachers' Pension Plan Board as founding investors invested $500 million in initial capital for the launch of a new insurance platform founded by former Prosperity Life Insurance Group LLC CEO Anurag Chandra.
The insurance platform, Constellation Insurance Holdings, has partnered with the institutional investors. It will focus on property and casualty and life insurer acquisitions and demutualizations.
Constellation intends to invest in North America-based stock and mutual insurers that are looking for growth capital, stronger ratings, scale efficiencies and equity incentives, while maintaining independent management structures and operations, Chandra said.
"Constellation's target market and value proposition are differentiated versus other insurance platforms that focus on either asset accumulation, legacy block reinsurance or have shorter-term investment horizons, which incentivize substantial expense reductions and limit investments in organic new business growth," he added.