The emergence of hedge-fund-backed reinsurers in Bermuda
Hedge funds have cottoned on to the benefits of Bermuda’s reinsurance market, with many establishing their own start-ups.
Described as the ‘Little Wall Street of the World’, Bermuda is one of the largest jurisdictions for insurance and reinsurance. More significantly, it is the reinsurance capital of the world, with a substantial number of insurance-related entities calling the island home. This insurance gem boasts an aggregate capital and surplus valued at $185bn, with total assets calculated at $524.7bn in 2011.
Recently, a new phenomenon has been taking the Bermuda reinsurance market by storm. Hedge funds, which until now have mostly chosen to invest indirectly into the insurance and reinsurance markets through insurance-linked securities structures or by investing in the equity of holding companies operating reinsurance business, have been establishing their own reinsurance companies. As a result, start-ups such as Third Point Re and PaCRe emerged in 2012 as competitors to the more traditional insurance models…
If you are registered and logged in to the site, click on the link below to read the rest of the Appleby briefing. If not, please register or sign in with your details below.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from Appleby
News from The Lawyer
Briefings from Appleby
Bermuda’s legal framework facilitates the creation of flexible and economically viable co-investment vehicles within a stable and business-friendly jurisdiction.
Feltham v Bouskell provides a cautionary tale for lawyers regarding the need to act quickly upon the receipt of instructions from elderly or ill clients.
Analysis from The Lawyer
Offshore law firms have long supplemented their legal offerings with fiduciary business, but will that model last?
Business is booming in the Isle of Man, a small jurisdiction that thinks big