hybrid reinsurance vehicle

Capital from third-party reinsurance investors is becoming increasingly important to re/insurer AXIS Capital with the company set to increasingly utilise alternative and capital markets sources, as the multiple balance-sheet approach enables it to optimise its risk appetite and underwriting portfolio.

For insurance and reinsurance group AXIS Capital Holdings, the launch of new venture total-return reinsurer startup Harrington Re, is considered part of the firms “21st century” approach to managing its capital, with the help and backing of third-party investors.

For investment giant Blackstone, Harrington Re the start-up total-return focused reinsurance firm launched by itself and AXIS Capital recently provides a source of permanent leveraged capital, helps it distribute its funds and ultimately will end in an IPO exit, according to the firms President & COO.

Harrington Re, the start-up total-return focused reinsurance firm launched by established re/insurer AXIS Capital and investment giant Blackstone, has now officially completed its capital raise and is ready to open for underwriting business.

Harrington Re Ltd., the start-up total return style reinsurance venture from re/insurer AXIS and alternative asset manager Blackstone, will have a flexible investment strategy, helping it to optimise both sides of the balance-sheet, after it completes a proposed capital raise of $850m.

The size of the investment loss suffered by hedge fund backed reinsurance firm Greenlight Re could not be avoided in its quarterly and annual results, dragging the David Einhorn backed reinsurer to a $43.1m net loss for the fourth-quarter of 2015.

Financial market investment volatility and a challenging reinsurance landscape negatively impacted the performance of hedge fund backed reinsurers during 2015, but internal hybrid, investment-oriented vehicles continue to gain momentum, according to Fitch Ratings.