investment oriented 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.

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.

Arch Capital Group’s total return reinsurance vehicle Watford Re, which has its assets managed by Highbridge Principal Strategies as a joint-venture investment-oriented, hybrid third-party capital backed reinsurer, has reported profitability on both underwriting and investment sides of the book in Q3 2016.

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).

Adverse economic conditions and reinsurance market turmoil has challenged industry participants throughout 2015 and into 2016, with hedge fund reinsurers being no exception, but it’s still too early to call this approach a failure, according to A.M. Best.

Greenlight Re, the Cayman Islands and Ireland based investment-oriented reinsurance firm which is backed by hedge fund manager David Einhorn, is looking for risk sourcing opportunities in Europe and Asia, striking a partnership to help it expand.

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.