Hedge fund reinsurer news

Market conditions see reinsurance firms struggle to generate desirable returns on the underwriting side of their balance sheets, leading Neil McConachie of Fidelis to ask why they aren’t writing less business and instead shifting capital to try to make a return on the investment side.

Fosun International Limited has now completed its acquisition of the remaining 80% of Ironshore that it did not already own, helping it to grow its footprint in insurance and reinsurance, as it becomes a more insurance-oriented investment group.

Fully collateralized Cayman domiciled reinsurance company Oxbridge Re was hit in the third-quarter by declines on the value of securities in its investment portfolio, demonstrating that it’s not just hedge fund backed companies that suffered.

Kelvin Re Ltd., the rated reinsurance vehicle established and operated by Credit Suisse Asset Management’s (CSAM) ILS team, has underwritten over $120 million of gross natural catastrophe reinsurance premiums in the first nine months of 2015.

The global financial market investment volatility that has hit hedge fund reinsurance firms returns in recent months have translated into a loss for the third-quarter at Bermuda-headquartered Third Point Re.

Two of the most prominent hedge fund reinsurance firms have seen an improvement in their investment returns in October, after two consecutive months of deeply negative returns due to financial market volatility.

AlphaCat Managers Ltd., Bermuda headquartered insurance and reinsurance group Validus’ ILS and third-party capital manager, added $163.8 million of third-party capital in Q3 2015, taking its total assets under management to just under $2.24 billion.

Watford Re, the investment-oriented, hedge fund partnered, hybrid strategy reinsurance joint venture vehicle operated by Bermudian re/insurance group Arch Capital alongside asset manager Highbridge Principal Strategies, achieved one of its targets in the last quarter, getting the combined ratio under 100%.

Greenlight Re, the Cayman Islands domiciled investment oriented reinsurance firm backed by hedge fund manager David Einhorn’s Greenlight Capital, Inc., suffered a $219.7m net loss for the third-quarter as investment volatility hit the firm.

Bermuda-headquartered insurance-linked securities (ILS) management, servicing, transformation and fronting specialists Horseshoe Group, has launched a new platform which targets asset managers seeking to establish hedge fund investment oriented reinsurers more simply.