SAC Reinsurer On Review

Jul 31 2013 | 9:33am ET

Insurance ratings agency A.M. Best has put SAC Capital Advisors' reinsurance arm on watch in the wake of criminal insider-trading charges against the hedge fund.

A.M. Best said that SAC Re was on review with negative implications, saying it wished to review an updated business plan—one that would say who would manage the reinsurer's assets should SAC itself be put out of business. SAC Re invests its assets and premiums with SAC Capital.

"Presently, there is uncertainty as to whether the invested assets can be managed by SAC Capital as well as whether there will be ramifications concerning any affiliation with SAC Capital on the reinsurance franchise going forward," A.M. Best said. "Rating downgrades could occur if SAC Re cannot separate itself from reputational risk, the business plan is not executed over the long term or key management is not retained."

SAC Re, which SAC launched a year ago, currently has an A-minus rating. The company is not technically a subsidiary or division of SAC, but is at risk because it shares a name with the troubled hedge fund, A.M. Best said.


In Depth

Whisky Business: The Ultimate Liquid Alternative Investment

Sep 15 2014 | 7:02am ET

David Robertson knows his single-malt whisky—he was the Master Distiller at the...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

The Cult of Loss Aversion: A Call to Rethink Risk in Global Macro Investing

Sep 4 2014 | 5:45am ET

In the wake of a traumatic loss, whether it is financial or personal, it is just...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

In search of the ‘new normal’ at the Fed

The Federal Reserve keeps baby-stepping toward a “normalization” of monetary policy. But just what is normal?

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.