One of Bermuda?s newest reinsurers ? Harbor Point Limited ? has closed its raising of $1.5 billion in capital, making the company officially open for business.

Harbor Point said simultaneous to closing its initial funding it also finalised its acquisition of Chubb Re?s reinsurance business, a key element of its business plan. Under the arrangement with Chubb Corporation, Harbor Point is assuming Chubb?s ongoing reinsurance business as the group bows out of that market.

Harbor Point, licensed to sell policies by financial services regulator the Bermuda Monetary Authority in October, was formed by various investors including lead investors Trident III, L.P. (a private equity fund managed by former Marsh & McLennan?s private equity arm Stone Point Capital), Chubb and JP Morgan Partners (a private equity affiliate of JPMorgan Chase & Co.) with investments of $200 million apiece. A $200 million convertible note has been issued to Chubb in recognition of Harbour Point assuming the ongoing business of Chubb Re. Investments are also coming from Diamond Castle Holdings, DLJ Merchant Banking Partners, Morgan Stanley & Co., Och-Ziff Capital Management Group, Banc of America Capital Investors and GE Asset Management.

Harbor Point, in a statement released yesterday, said it expects to begin selling policies to customers immediately. Harbor Point also has a subsidiary based in Bernardsville, New Jersey dedicated to working with the business assumed from Chubb. Harbor Point said it also expects to move quickly to acquire a US-domiciled reinsurance company.

Harbor Point is one of ten major reinsurers currently setting up in Bermuda to take advantage of an expected rise in 2006 premium pricing after the industry was hit by up to $80 billion in losses from hurricanes Katrina, Rita and Wilma.

?We believe there is a real opportunity today in the global reinsurance market for a stand alone platform with an experienced management team,? said Harbor Point?s chief executive John Berger.

Harbor Point, through the agreement with Chubb, has been able to take on that group?s reinsurance staff. Insurance and reinsurance specialists, from actuaries to underwriters and modelling analysts ? have been in high demand with the influx of new companies, backed by some $10 billion in capital.

?With the entire Chubb Re team transferring to Harbor Point, we believe we are well positioned to address this opportunity and we are looking forward to this next step in the development of our business,? Mr. Berger said.

Stone Point Capital and its predecessor operations led the formation of many successful insurance and reinsurance companies, including ACE Limited, XL Capital Limited, Mid Ocean Limited and Axis Capital Holdings Limited. Stone Point Capital was formed this year by principals that formerly led private equity firm, MMC Capital, Inc.