Cohen’s Dekania makes $45m debt investment in Brotherhood Mutual

Fixed income financial services investment specialist Cohen & Company, has made a $45 million debt investment into Brotherhood Mutual Insurance Company through its subsidiary Dekania Capital Management.

Cohen & Company has been making subordinated insurance debt investments into a range of carriers over recent years, as part of its growing practice focus on extracting attractive returns from the insurance and reinsurance market for a growing investor base.

It’s latest to come to light is the purchase of $45 million of privately placed surplus notes, issued by Brotherhood Mutual Insurance Company, by Dekania Capital Management, which is Cohen’s specialist practice providing debt capital to small and mid-sized mutuals and insurers.

The surplus notes carry a fixed rate of 6.00% and have a 20-year term, while the proceeds are expected to be used by Brotherhood Mutual for general corporate purposes and to support growth.

John Butler, managing director at Cohen & Company, commented on the investment, “We are delighted to be able deploy our deep insurance industry expertise to support Brotherhood Mutual with regulatory-qualifying capital as they continue to develop their very successful business. We look forward to a long and mutually beneficial relationship with their highly talented management team over the coming years.”

BMS Capital Advisory led the capital raise for Brotherhood Mutual, acting as its exclusive financial advisor and placement agent.

Alex Orloff, managing director at BMS Capital Advisory, said: “We are pleased to have secured a financing solution that reflects Brotherhood’s strong market position, consistent value creation, and industry leading management. BMS Group as a whole is delighted to expand the range of services provided to Brotherhood, as we remain focused on offering holistic solutions for capital management and strategic development to our clients across reinsurance, legacy, rating advisory, and capital markets.”

Matthew Hirschy, senior vice-president and treasurer at Brotherhood, added, “Brotherhood Mutual is excited about the issuance and placement of its surplus notes through BMS Capital Advisory. This allows us to continue to innovate and explore additional solutions to protect Christian ministries, schools, and colleges.”