A Los Angeles-based firm has launched a new Bermuda reinsurer.

Crabel Re, set up by global alternative investment firm Crabel Capital Holdings, will use the Multi-Strat Re platform for its underwriting and reinsurance operations.

The move allows Crabel Capital, which manages a total of $1.7 billion for its clients, to enter the reinsurance market more easily and also to focus on the investment management side of the business.

Toby Crabel, founder and CEO of Crabel Capital, said: “Reinsurance offers a unique opportunity to raise capital and manage assets for the firm.

“Our goal is always to provide the best possible products and services to our clients and reinsurance will provide one more option moving forward.”

The firm aims to use Crabel Re to to underwrite reinsurance business and invest the premium float in its short-term systematic trading strategy, Crabel Multi-Product.

Mr Crabel, who had three years as a professional tennis player, made his name as a commodities trader. In 2005, the Financial Times described him as “the most well-known trader on the counter-trend side”.

Multi-Strat Re is designed to help asset managers get into reinsurance, with the option to break away and become independent reinsurers in the future.

Crabel Capital focuses on futures and foreign currency trading and was a pioneer in short-term trading, The firm offers diversified systematic products with low correlation to traditional asset classes.