New Montpelier unit Blue Capital Re files for $100m IPO
Montpelier Re Holdings is launching a new Bermuda company called Blue Capital Reinsurance Holdings.
Blue Capital Re, a property catastrophe reinsurance company, which will invest in insurance-linked securities, filed with the SEC to raise up to $100 million in an initial public offering.
Blue Capital Re seeks to offer collateralised reinsurance capacity, primarily in the property catastrophe market.
Documents filed with the SEC show that Montpelier Re is seeking to list the new company on the New York Stock Exchange and Bermuda Stock Exchange.
“It's an interesting launch as it looks like a new reinsurer but takes a similar form to many reinsurance sidecars in terms of strategy,” industry blog Artemis said.
“By listing on a major global exchange like New York it should help Montpelier Re raise much more interest in reinsurance as an asset class and help it to access a wider third-party capital base.”
The re/insurer said Form S-1 was filed with the US Securities and Exchange Commission regarding the proposed IPO of Blue Capital Reinsurance's common shares. The number of shares to be offered and the price for the proposed offering is yet to be determined.
Deutsche Bank Securities would act as book-running manager for the offering.
A registration statement filed with the SEC has not yet become effective.
Earlier, the registration statement had been submitted to the SEC on a confidential basis under the Jumpstart Our Business Startups Act of 2012.
The proposed offering will be made only by means of a prospectus, a statement said.
Copies of the preliminary prospectus may be obtained, when available, from Deutsche Bank Securities Inc.
A statement from the company says Blue Capital Reinsurance Holdings “is a newly formed Bermuda reinsurance holding company seeking primarily to offer collateralised reinsurance in the property catastrophe market, by underwriting a diversified portfolio of short-tail reinsurance contracts and investing in insurance-linked securities”.
Artemis added: “In this initial public offering for Blue Capital Reinsurance Holdings, up to $100m of shares look set to be offered to private investors while Montpelier Re itself will also invest in the new reinsurer in a concurrent private placement.”