Sunday, 23 October 2016
Last updated 1 day ago
Jul 10 2012 | 10:24am ET
SAC Capital Advisors is officially in the reinsurance business.
SAC Re Holdings said it began operations yesterday with $500 million in initial capital, from founding investors including SAC founder Steven Cohen and private equity firm Capital Z Partners, among others.
Bermuda-based SAC Re won an A-minus rating from insurance ratings agency A.M. Best. The firm, which will offer high-margin property catastrophe and low-severity casuality reinsurance, is led by Simon Burton, formerly CEO of Lancashire Holdings and Lancashire Insurance Co. Burton is an investor in the new firm.
Cohen told clients late last year that he planned to follow in the footsteps of Greenlight Capital and Third Point, both of which have reinsurance arms. Like both of those firms, he plans to invest SAC Re's premiums in his hedge funds.
SAC Re has been fundraising since last year and closed the effort this weekend, The Wall Street Journal reports.