SAC Launches Reinsurance Arm

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.


In Depth

Malik: The Science of Deal Sourcing 201

Aug 27 2015 | 5:35pm ET

Deal sourcing is understandably a hot topic among private equity firms because it...

Lifestyle

Rolling Art Advisors Marketing Collectible Car Fund As Uncorrelated Alternative

Aug 27 2015 | 6:47pm ET

A new fund is trying to provide investors with greater access to an emerging asset...

Guest Contributor

FATCA for Hedge Funds: Eight Common Pitfalls

Sep 1 2015 | 10:56am ET

FATCA is now a way of life for those in the financial industry and most professionals...

 

Editor's Note