Reinsurer Sandell lists on BSX
Sandell Holdings Ltd, the parent company of a Bermuda reinsurer, has listed $53 million of shares on the Bermuda Stock Exchange.
And after advising Sandell through the process, Estera and law firm Appleby are hopeful that more commercial insurers will follow suit with a local listing.
Sandell, which is backed by New York-based hedge fund manager Sandell Asset Management and underwrites through Bermuda class 3A insurer Sandell Re Ltd, has total consolidated assets of almost $100 million.
Tom Sandell, the chairman and chief executive officer of Sandell Holdings Ltd said: “We chose to incorporate our companies in Bermuda because of its reputation as a world class insurance and reinsurance market and its reputation for transparency.
“We believe that listing on the BSX was a natural next step because of the BSX's international reputation as one of the world's fastest growing offshore stock exchanges.
“We were very pleased with the listing process, which demonstrated to us why the BSX has been so successful, with a good balance between strong regulatory oversight and a pragmatic approach to issuers. Estera and Appleby provided excellent guidance every step of the way.”
Incorporated last year, the reinsurer is one of several backed by hedge funds to be operating on the island. For asset managers, a reinsurer has the advantage of creating a more permanent pool of capital that cannot easily be pulled out by investors. Also the premiums from underwriting lower-volatility lines of business generate “float” for the primary purpose of investment.
The Estera team was led by Bermuda associate director Sherman Taylor, assisted by account manager Gordon Cox, while the Appleby team was led by Bermuda managing partner Timothy Faries, assisted by associate Matthew Carr.
Estera's Mr Taylor said: “I am excited by the possibility that many more Bermuda commercial insurers will follow the lead of Sandell Holdings Ltd, and also list their shares on the BSX's mezzanine market, which will add a brand new dimension to the BSX's undisputed global dominance in ILS listings.”
James McKirdy, chief compliance officer of the BSX, said: “This listing helps to confirm Sandell Holdings Ltd's long term commitment to Bermuda as its domicile of choice and reinforces its Bermuda presence at the highest level. The BSX looks forward to working with Sandell Holdings Ltd as the company develops and grows in Bermuda.”