Channel Re is the name of a new joint venture being launched by two Bermuda-based reinsurers - RenaissanceRe and Partner Re - along with MBIA and Koch Financial.

Last night RenaissanceRe reported in its third quarter earnings release that it expected to invest between $115 million and $125 million in the new company which is still subject to final documentation, numerous closing conditions, regulatory approval and the completion of the process to obtain appropriate financial strength ratings. Once set up, Channel Re is to assume a portfolio of in-force business from MBIA, participate in MBIA's reinsurance treaty and provide facultative reinsurance support to MBIA.

Renaissance added that its investment in the new venture was "expected to produce attractive financial returns for its shareholders".

RenaissanceRe's release also indicated that Channel, which is being set up as a financial guaranty reinsurer, was expected to be a stable, long-term venture. Channel Re is expected to have a senior management team comprised of seasoned industry professionals.