S.A.C. Re Begins Operations in Bermuda; $500 Million in Capital

July 10, 2012

S.A.C. Re, Ltd. announced that it has commenced operations with $500 million of contributed capital, raised in a private placement of the equity securities of its parent, S.A.C. Re Holdings, Ltd.

S.A.C. Re Holdings’ founding investors include Steven A. Cohen and Capital Z Partners III, L.P. (“Cap Z”). Cohen is the CEO and Chairman of S.A.C. Capital Advisors, L.P., a global investment management firm headquartered in Stamford, Connecticut.

The bulletin described Cap Z as a “major investor in the Bermuda reinsurance market, having been a founding investor in Endurance Specialty Holdings Ltd. and Lancashire Holdings Limited.”

It described S.A.C. Re as 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.”

The reinsurer is led by CEO Simon Burton. The management team includes Jonathan Reiss, CFO; Claude Lefebvre, Chief Underwriting Officer Casualty; Victoria Guest, General Counsel; and Peter Skerlj, Head of Risk & Analytics. Kathleen Reardon will be joining the team later this year as Chief Underwriting Officer Property, subject to Bermuda Department of Immigration approval.

S.A.C Re also said that Endurance Specialty’s former President and CEO Kenneth J. LeStrange will serve as Chairman of the Board of Directors of S.A.C. Re Holdings. He retired as CEO in March 2010 and as Chairman in 2011.

Burton indicated that the firm is “delighted to commence operations in Bermuda with a unique business plan that leverages the combined strength of our reinsurance executive team and S.A.C. Capital’s asset management capabilities.”

S.A.C. Re will target a mix of high margin property catastrophe and other property classes and low severity casualty reinsurance business. Its investments will be managed by S.A.C. Capital.

A.M. Best has assigned an ‘A-‘ (Excellent) rating with a stable outlook to the new company [See related article].

Source: S.A.C. Re

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