Joe Taussig sets up Puerto Rico reinsurer
A Bermuda investment banker 30 years ago, who subsequently became involved in the financing of insurers and reinsurers, has just launched a new Puerto Rico reinsurer, Taussig Capital Re.
Well known in Bermuda, Joe Taussig announced on Monday that Taussig Risk Capital Advisors had acquired all of the voting shares of Spencer Re I.I., an international insurance company founded in 2006 and licensed in Puerto Rico.
He said that he has rebranded the company to offer reinsurance to primary insurers and reinsurers looking to optimise their reinsurance programs and access non-traditional sources of insurance capital.
A press statement said: “Taussig Capital Re is able to segregate pools of assets and liabilities, creating unique opportunities for exposure to a broad spectrum of insurable risks and a flexible platform for insurers and reinsurers.”
It quotes Mr Taussig: “We are incredibly excited about the opportunities that a combined Taussig-Spencer deal brings to the marketplace.
“Insurers and reinsurers will now have a new tool to help them competitively manage risks. Furthermore, being licensed in Puerto Rico provides a number of unique advantages from both a legal and regulatory perspective.
“Not only is Puerto Rico the only offshore insurance centre to be a part of the US federal court system, it (is) also a member of the US National Association of Insurance Commissioners (NAIC) — the industry’s regulatory standard-setting body.”
In addition to risk management, Taussig Capital Re is said to specialise in providing non-traditional capital sources for insurers and reinsurers, providing bespoke solutions to companies looking to restructure their legacy insurance programmes including ‘captive insurance’ programmes.
“This represents the next step in the evolution of the structure of the insurance industry,” Mr Taussig added.
“Taussig Capital Re will provide insurance products that will assist in safeguarding those companies’ risks while allowing them to redeploy capital back into their primary businesses.”
The statement adds: “Joe is the founder and creative force behind Taussig Risk Capital Advisors.
“He started Bermuda’s first investment bank in 1990 when its insurance industry and hedge funds were in their infancy with the vast majority of offshore funds in Bermuda.
“Joe helped finance many of the insurers and reinsurers that propelled Bermuda’s growth in becoming ‘The World’s Risk Capital’.”
For more than two decades, it says: “Taussig Capital has been an innovation leader in the insurance industry. Through its pioneering approaches to risk management and ability to bring alternative sources of capital, Taussig delivers custom solutions and attractive investment returns to both purchasers and providers of insurance and reinsurance.”
The Taussig Capital website states: “Joe is the founder and serves as the CEO of TCI. He started the first investment bank in Bermuda in 1990 when its insurance industry was in its infancy and helped finance most of it for 15 years (it is now the second largest insurance market globally).
“Joe then moved to Switzerland and began to found, co-found and advise on numerous start-up insurers, reinsurers and banks based on a combination of proprietary product and investment strategies.
“Most of the capital has come from the hedge fund and asset management industries. He holds Series 24, 27, 7, 4, and 63 licences with FINRA.
“Joe served as a US Marine in Vietnam as a force recon patrol leader and an infantry company commander in Hue City during Tet.
“He earned a BS in engineering from the US Naval Academy, an MBA from Harvard and also holds a Swiss passport.”