hedge fund

Total-return reinsurance firm Sandell Re and legacy specialist SOBC Corp. have completed two more run-off transactions under their legacy or distressed run-off and commutation joint-venture SOBC Sandell, acquiring two more captive entities.

The joint-venture legacy or distressed run-off and commutation insurance and reinsurance entity formed by total-return reinsurer Sandell Re and legacy specialist SOBC Corp. has entered into a new acquisition, purchasing 100% of the stock of American Safety Risk Retention Group, Inc. of Vermont.

The total return reinsurance model, or investment oriented reinsurance model, or hedge fund backed reinsurance model (depending on what you prefer to call it), remains a challenging strategy to execute on well, but more recent start-ups that are sponsored by an existing re/insurer and asset manager are favoured by S&P.

Generally, insurance-linked investment fund managers have moved up a ranking of alternative asset managers over the last year, as their assets under management increased propelling them upwards. But the potential for ongoing growth is clear, as ILS only makes up 0.6% of the surveyed asset base.

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.

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.

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.

The parent of hedge fund, investment oriented or total return strategy reinsurance firm Sandell Re, which has its assets managed by Sandell Asset Management Corporation, has been listed on the Bermuda Stock Exchange (BSX).