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Sandell launches Bermuda reinsurer

A US asset management firm has opened a reinsurer in Bermuda — and it could lead to a jobs boost for Bermuda.

Sandell Asset Management, which has offices in New York and London, has launched Sandell Re in a bid to increase long-term investment cash.

The firm's founder, Tom Sandell, said: “We have been evaluating reinsurance opportunities for several years and I believe this offers a unique permanent capital vehicle for the firm.

“Our goals remain aligned with our investors and we are committed to offering the best possible products and services to our clients. Reinsurance will provide one more option moving forward.”

Sandell Re will use the Sandell hedge fund to oversee its assets and use the existing Multi-Strat Re platform.

Multi-Strat Re chairman and CEO Bob Forness said: “We are excited to welcome Sandell Re to the Multi-Strat platform and look forward to supporting the growth of the company through our focus on speciality underwriting.

“Sandell Re is the fifth reinsurer to join the platform and the first for 2015.”

He added: “It's the intention for each grow in time and hopefully that will mean employment opportunities in the future.”

Mr Forness said that Multi-Strat Re writes reinsurance business, then allocates it to participating reinsurers.

He added: “It's like a hub and spoke structure. It's an attractive structure for Bermuda and hopefully we will be able to build some attractive business over time.”

Sandell joins hedge fund managers David Einhorn and Daniel Loeb, who owns Third Point Re, in the reinsurance sector, where firms take on risks from insurance companies and invest premium revenue before claims come due.

Sandell was founded in 1998 and uses an events-driven investing strategy similar to Mr Loeb's Third Point.

The Sandell fund uses a “best idea approach” where capital is invested opportunistically on a global basis across various sectors.

The firm has in the past invested in areas as diverse as restaurant chains and pipeline operators and used its shareholding to push for board changes and spin-offs.

New reinsurer: Sandell Asset Management Corp CEO Tom Sandell

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Published March 06, 2015 at 8:00 am (Updated March 05, 2015 at 8:52 pm)

Sandell launches Bermuda reinsurer

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