Private equity firm Cartesian Capital Group has set up new Class 3 company Iris Reinsurance Ltd. in Bermuda.

The company, which was formed in conjunction with Bermuda national squash team international Chase Toogood and Schuyler Havens, will offer industry-loss warranties and cover a range of catastrophes globally.

"The global financial crisis has created a true dislocation in the reinsurance markets," said Peter Yu, managing partner of Cartesian and director of IrisRe.

"While the underlying risks remain largely unchanged, the financial crisis has fuelled both strong demand for reinsurance and a significant reduction in the reinsurance capacity of the capital markets. With a secure capital base and drawing on Chase Toogood's broad experience in the Bermuda market, IrisRe will work creatively to meet the needs of the insurance and reinsurance markets."

Cartesian, which was founded in 2006 by Mr. Yu and other former members of the senior management team of AIG Capital Partners Inc., manages more than $1.1 billion in private equity investments worldwide with offices in New York, Eastern Europe, Sao Paolo and Shanghai.