Ed Noonan, chief executive and chairman of new reinsurer Validus, has been praised by at least one associate as knowing how to make, and keep, money.

This may have had something to do with the decision to have Mr. Noonan, the former chief executive of American Re, lead Validus, a $1 billion Bermuda reinsurer formed late last year.

The reinsurance industry is a cyclical one ? earnings can be badly hit when costly events strike, as was the case with last year?s spate of hurricanes wreaking havoc across the southern US ? and someone who can chart a steady financial course is worth their weight in gold.

Praise for Mr. Noonan?s financial prowess came from Saul Fox, chairman of United America Indemnity, where Mr. Noonan last year took over as interim chief executive prior to founding Validus, along with former Marsh & McLellan chief Jeffrey Greenberg, Validus.

The relationship between Mr. Fox, formerly a partner with buy-out firm Kohlberg Kravis Roberts & Co., and Mr. Noonan date back to Mr. Noonan?s American Re days, a company he joined in 1983 and left in late 2001. ?Saul and I had a very successful history together when he was part of KKR and I was part of the management of American Re.? KKR did a leveraged buy-out of American Re, which had been owned by Aetna, in 1992. The company was acquired by Munich Re, the world?s biggest reinsurer, in 1996. Mr. Noonan was named American Re?s president and CEO a year later.

?The commentary was very flattering and I take it all with a grain of salt,? Mr. Noonan says of Mr. Fox?s praise

In fact, Mr. Noonan credits his move to Validus as an opportunity coming open at the right time. Things were going smoothly at UAI and he started to think through what he would do next when Hurricane Katrina hit. Forming a new company suddenly seemed a good idea. (Catastrophes generally spell opportunity for insurance and reinsurance companies.)

Fast forward four months and Mr. Noonan, a native New Yorker, finds himself relocating from New Hope, Pennsylvania to the Island. ?I?m one of those poor souls in the market looking for somewhere to live,? he said.

Mr. Noonan, 47, and a 26-year industry veteran, wasn?t a stranger to Bermuda, having been involved with companies previously that had subsidiaries on the Island, something that brought him to these shores ?many times? through the years.

He?s happy to be here too. ?The labour force is outstanding and the quality of life is wonderful. Bermuda?s charm is obvious but when you get behind it the business environment is a result of the people, the regulatory regime, that all contributes to this being a truly unique spot.

?My children are in college so we see them when we see them. But my wife and I plan to spend as much time on the Island as we can,? Mr. Noonan said.