Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Steve Cohen’s SAC to Get into the Reinsurance Business

Steve Cohen “is branching out and plans to set up his own reinsurance firm,” according to Reuters Thursday.

Steven Cohen

Steve Cohen’s SAC Re is Expected to Launch Early Next Year

Steve Cohen’s new firm, which will be called SAC Re and based in Bermuda, is expected to launch early next year. Reuters reports Cohen “hopes to raise about $500 million in capital and that all the money would be invested in SAC funds.” For its operation, Cohen is entrusting the duty to insurance veteran Simon Burton. Burton comes to SAC Re with strong experience. He was “deputy chief executive of Lancashire Holdings, where he was also chief executive and chief underwriting officer of the group’s Bermudan underwriting subsidiary, Lancashire Insurance Co.”

Follow the Leader to Reinsurance

In making the move to offer reinsurance, Cohen the latest hedge fund manager to do so. Dan Loeb, who runs Third Point, said in September that he would be launching his own reinsurer. Third Point Re. David Einhorn, the manager of Greenlight Capital, has had his own reinsurance company, Greenlight Capital Re Ltd (GLRE), for several years. “Reinsurance essentially acts as a safety valve for insurance companies in that an insurer pays a reinsurer to cover part of its losses between certain thresholds.”  Reuters calls it “a savvy way to raise new money during tough times.”