Bermuda-based Montpelier Re Holdings Ltd announced the launch of Blue Capital, an asset management platform offering a range of catastrophe reinsurance-linked investment products to institutional and retail investors.
Montpelier Re’s President and CEO Chris Harris pointed out that the reinsurer has “been successfully managing third-party capital since 2004 and Blue Capital represents the latest step in the expansion of our underwriting partnership business. Blue Capital broadens the product mix we can offer clients, and investors benefit from Montpelier’s long-established underwriting expertise and relationships.”
William Pollett, Montpelier’s Chief Corporate Strategy and Development Officer, has been named President of Blue Capital Management Ltd. (BCML). Jason Pratt, Montpelier’s Chief Investment Officer, has been named President of Blue Capital Advisors Ltd., the U.S.-based investor marketing arm of Blue Capital.
The bulletin said they would both “retain their existing Montpelier roles in addition to jointly leading Blue Capital. Adam Szakmary, previously Vice President, Underwriting and Risk Management and an underwriter with Montpelier since 2004, has been appointed Portfolio Manager of BCML, subject to the approval of the Bermuda Department of Immigration.”
The Company also announced the completion of its initial public offering of the Blue Capital Global Reinsurance Fund Limited, which it described as a “closed-ended feeder fund which is expected to be admitted to trading on the Specialist Fund Market of the London Stock Exchange and listed on the Bermuda Stock Exchange on December 6, 2012.
“The Fund will invest in a diversified portfolio of fully collateralized reinsurance-linked contracts and other investments carrying exposures to insured catastrophe event risks via a segregated account and will be backed by Montpelier’s dedicated analytics, risk management, claims and actuarial teams. Montpelier received final allocations to the Fund of just over $100 million pursuant to the offering, of which $50 million was provided by the Company.”
Pollett noted: “Blue Capital is delighted to launch this listed fund which will provide targeted exposure to the reinsurance market via a partnership with Montpelier’s global property catastrophe franchise. We believe Montpelier’s reach and expertise will allow Blue Capital to construct a diversified portfolio with attractive risk-adjusted return characteristics.”
The bulletin also said that BCML has engaged Prime Management Ltd. “to perform fund administration services, including maintaining the books and records for the platform’s Master Fund, calculating the net asset value of the Master Fund’s shares and providing certain other administration services. Prime has been servicing the specialized requirements of investment structures, sponsors and managers in the collateralized reinsurance and risk-linked securities market since 2002. Prime is an independent fund administrator, is licensed and regulated as a fund administrator by the Bermuda Monetary Authority under the Investment Funds Act 2006 and has successfully completed a SSAE 16 Type II Review Certification (formerly called SAS 70).”
Source: Montpelier Re
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