Hedge fund reinsurer Sandell Re joins forces with SOBC for legacy play

by Artemis on November 2, 2016

Hedge fund reinsurance firm Sandell Re Ltd. is joining forces with specialist in acquisition and management of legacy or distressed insurance and reinsurance liabilities SOBC Corp. to create a new joint-venture named SOBC Sandell.

The legacy or distressed run-off and commutation space of the insurance and reinsurance market will be attractive to Sandell Re, as by working with a specialist in this sector the hedge fund backing Sandell Re will no doubt be looking to increase its longer-tailed assets sourced from re/insurance business.

By working in partnership with SOBC Corp., who specialise in both acquiring and then the ongoing management of distressed insurance or reinsurance entities, Sandell Re and the asset manager behind it Sandell Asset Management Corporation will be able to gain access to the all important premium float from these run-off legacy re/insurers.

SOBC benefits by working with an investment oriented, or total return, reinsurer partner who can help the firm to extract greater value from the legacy insurance and reinsurance portfolios it acquires and manages.

SOBC Sandell’s will focus on the acquisition and management of legacy insurance and reinsurance liabilities that are currently in run-off, as well as providing consultancy services to insurance and reinsurance entities and regulatory bodies for distressed blocks of business.

Stephanie Mocatta, Founding Partner and Chief Executive Officer of SOBC Corp, commented on the announcement; “We are delighted to be partnering with Sandell, we have grown successfully over the last two years with the backing of our private investors. By partnering with Sandell we are now able to increase our growth rate, complete more transactions and provide finality solutions to many more troubled insurance companies”

Tom Sandell, Chairman and Chief Executive Officer of Sandell Re Ltd, added; “Partnering with SOBC brings a great team of senior insurance professionals who, together with the backing of Sandell Re, will be able to significantly increase our business and market share. We view this as a great strategic partnership which complements our existing successful P&C reinsurance business.”

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