Bermuda-based Aurigen Re Capital Ltd.'s subsidiary Aurigen Reinsurance Co. has been given the go-ahead to start up as a life and health reinsurer in Canada.

The Office of the Superintendent of Financial Institutions has given Aurigen Reinsurance, formerly Aurigen Canada Ltd., approval to commence operations after Aurigen Re Capital secured $500 million of equity in November 2007 to set up a life reinsurance unit in Canada. Capital commitments were made mainly by private equity funds managed by EdgeStone Capital Partners Inc., Englefield Capital LLP, Pine Brook Road Partners LLC and Soros Strategic Partners.

But Aurigen Reinsurance had to await regulatory approval to launch the business in Canada. "Canadian regulatory approval is the culminating step to launch Aurigen Reinsurance Company and provide the Canadian life insurance market with greater choice for its reinsurance partners," president and chief executive officer Alan Ryder said in a release yesterday.