New Class 4 reinsurer begins operations in Bermuda

MONDAY, JULY 9: SAC Re. Ltd. is Bermuda’s latest Class 4 reinsurer. 

The company began operations today with $500m in capital, which was raised in a private placement of the equity securities of its parent company, SAC RE Holdings Ltd.

Steven Cohen and Capital Z Partners III, L.P. (Cap Z) are the founding members of SAC RE Holdings. 

Mr Cohen is CEO and chairman of SAC Capital Advisors, L.P., a global investment management firm headquartered in Stamford, Connecticut. 

Cap Z is a major investor in the Bermuda reinsurance market, having been a founding investor in Endurance Specialty Holdings Ltd. and Lancashire Holdings Limited.

SAC RE is a Bermuda-based Class 4 reinsurer formed to generate attractive risk-adjusted returns by combining the strengths of an experienced management and underwriting team and S.A.C. Capital’s asset management capabilities.

CEO Simon Burton will lead the senior management team, which includes CFO Jonathan Reiss; Claude Lefebvre, CUO Casualty; Victoria Guest, general counsel; and Peter Skerlj, head of risk and analytics. 

Kathleen Reardon will be joining the team later this year as chief underwriting officer property, subject to Bermuda Department of Immigration approval.  Kenneth LeStrange will serve as chairman of the board of directors of SAC Re Holdings.

Mr Burton said: “We are delighted to commence operations in Bermuda with a unique business plan that leverages the combined strength of our reinsurance executive team and SAC Capital’s asset management capabilities.”

SAC Re will target a mix of high margin property catastrophe and other property classes and low severity casualty reinsurance business.  SAC Re’s investments will be managed by SAC Capital.