Hedge fund reinsurer news

Total return reinsurance vehicle Watford Re, part-owned and operated by re/insurer Arch Capital Group with asset management provided by Highbridge Principal Strategies, delivered a positive total return in the fourth-quarter of 2016 thanks to its investment performance.

AXIS Capital has reported an increase in fee income earned through its strategic capital partners activity, which includes its alternative reinsurance capital strategy and the total-return reinsurer Harrington Re.

SOBC Sandell, a joint-venture legacy or distressed run-off and commutation insurance and reinsurance entity established by hedge fund reinsurer Sandell Re Ltd. and run-off specialist SOBC Corp, has made its first acquisition.

Bart Hedges is leaving hedge fund backed reinsurance firm Greenlight Re, stepping down from his Chief Executive Officer position as of March 31st 2017 and also from his Board position at the reinsurer.

Bermuda based insurance and reinsurance group Enstar has launched a new $620m total return reinsurer named KaylaRe Ltd., alongside investment manager Hillhouse Capital Management, Ltd. and financial services equity investor Stone Point Capital LLC.

The investment returns of the two main hedge fund reinsurance firms, being Greenlight Re and Third Point Re, reveal a reversal of the negative trend witnessed throughout last year with both firms’ year-to-date figures showing an investment gain, despite differing performance so far in Q4 2016.

Kelvin Re Ltd., the rated reinsurance vehicle operated by Credit Suisse Insurance Linked Strategies Ltd. and backed by an investment from the Abu Dhabi Investment Council, has increased its gross premiums written in 2016 to over $150 million of catastrophe reinsurance cover.

The hedge fund reinsurance business model showed its potential in the third-quarter of 2016 with both Greenlight Re and Third Point Re reporting net income gains compared with a loss in the same period last year, although there was still evidence of divergent performance across the two businesses.

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.

Total-return reinsurance vehicle Harrington Re, established earlier this year by re/insurer AXIS in partnership with Blackstone, has become an integral part of the firm’s broader alternative capital strategy, according to AXIS Capital Holdings President and Chief Executive Officer (CEO), Albert Benchimol.