Bermuda reinsurance firm SAC Re is still on the hunt for a buyer after a US firm owned by a major investor was fined a record $1.8 billion in the US on charges of securities and wire fraud.

Steven Cohen’s Connecticut-based SAC Capital, a hedge fund, was also ordered to stop managing money for outside investors.

Mr Cohen, who put his stake in SAC Re, which is a separate entity from SAC Capital, up for sale earlier this year was not personally charged in the indictment.

Two Sigma Investments, a technology and data-driven hedge fund and investments firm was this week listed as front-runner to buy the firm.

SAC Capital managed SAC Re’s investment portfolio and it has been reported that Two Sigma Investments is well-placed to take over that role.

Insurance Insider reported that Brian Duperreault, the former president and CEC and Marsh & McLennan and chairman of ACE, was involved in the talks.

Simon Burton, head of Hamilton-based SAC Re yesterday declined to discuss on the future of the firm or on the impact of the SAC Capital court decision on the business.

He said: “Unfortunately, I am not able to make any comment on this.”

But it is understood the company is still seeking a buyer for SAC Capital’s stake in the firm.

SAC Re was set up only last year with $500 million in a private placement, which included Mr Cohen and private equity fund Capital Z Partners.

A spokeswoman for the Bermuda Monetary Authority said: “The Authority has been aware of the US proceedings and the settlement in relation to SAC Capital.

“We have been in close discussions with SAC Re management for some time while these matters have been developing.

“The company is a separate entity from SAC Capital and supervised as a Class 4 reinsurer.

“It would be inappropriate to comment further at this time.”

But it is understood that the BMA has also been in close contact with the American authorities over the case.