Hedge fund reinsurer news

Fully collateralized reinsurance company Oxbridge Re has reported a good first year’s results thanks to zero losses and a surprisingly good investment return that perhaps hints at the non-traditional, or even hedge fund reinsurer like, nature of its investment strategy.

A new hedge fund backed annuity and life insurance company has received its rating, showing that the trend towards leveraging hedge fund strategies to boost insurance or reinsurance company performance is expanding.

Sandell Asset Management Corporation has become the latest hedge fund manager to join the Multi-Strat Re platform, as the investment oriented reinsurance strategy continues to gain appeal among the asset managers of the world.

Warren Buffett’s much-anticipated 50th anniversary letter to Berkshire Hathaway investors was published on Saturday and the ‘Sage of Omaha’ explained that insurance and reinsurance has been “the engine” that propelled the firm’s expansion.

Bermuda-located hedge fund strategy reinsurance firm Third Point Re slipped to a loss on lower investment returns in Q4. However, key indicators show ongoing improvement in underwriting returns and even the soon-to-close ILS fund contributed positively again.

Greenlight Re, the Cayman Islands domiciled, hedge fund strategy reinsurance firm backed by David Einhorn and his Greenlight Capital, Inc. hedge fund, has slashed its premiums written again in the last quarter as it declined to renew business deemed unprofitable.

Bermuda domiciled hedge fund style reinsurance and hybrid investment firm Till Capital Ltd. has announced that its reinsurer entity Resource Re Ltd. has entered into its first reinsurance policy, helped by the Multi-Strat Re platform.

Bermuda-based hedge fund strategy reinsurer Third Point Reinsurance, which is backed by hedge fund manager Dan Loeb’s Third Point LLC, is not among the reinsurers looking for scale though a merger or acquisition process at the moment.

The fourth-quarter results from Bermudian insurance and reinsurance group Arch Capital show that its hedge fund style reinsurer venture Watford Re made good progress towards its target sub-100 combined ratio in its first year.

The U.S. Internal Revenue Service will aim to release regulations related to the hedge fund reinsurance strategy within 90 days, after its commissioner was quizzed on the lack of movement on an issue that has been raised repeatedly in Senate.