A new entrant to the Bermuda reinsurance market is planning to offer predominantly industry loss warranties. Iris Re, which began operating on Wednesday, has been created by private equity firm Cartesian Capital Group LLC. Cartesian say they have created the reinsurer to provide much needed reinsurance capacity at a time when the capital market investment has reduced. They also plan to offer more traditional reinsurance cover for a wide range of catastrophe risks.
“The global financial crisis has created a true dislocation in the reinsurance markets,” said Peter Yu, Managing Partner of Cartesian and the Director of IrisRe. “While the underlying risks remain largely unchanged, the financial crisis has fueled both strong demand for reinsurance and a significant reduction in the reinsurance capacity of the capital markets. With a secure capital base and drawing on Chase Toogood’s broad experience in the Bermuda market, IrisRe will work creatively to meet the needs of the insurance and reinsurance industries.”