ABR Reinsurance has been created with Ace Group as the sole source of reinsurance risks ceded to ABR Re, and BlackRock as ABR Re's exclusive investment management service provider.
ABR Re will underwrite a portion of a selection of reinsurance treaties that Ace places with the traditional reinsurance market and will invest its assets in a diversified and dynamic alternative investment portfolio managed by BlackRock.
"ABR Re is a unique company that complements the traditional reinsurance market"
ABR Reinsurance Capital Holdings, ABR Re's parent company, has raised about $800m of capital through a private placement.
Ace and a BlackRock affiliate have minority ownership stakes in the parent company. Ace and BlackRock said ABR Re's investors "will benefit from underwriting profit generated by ABR Re's reinsuring a wide range of Ace's primary insurance business and the income and capital appreciation BlackRock seeks to deliver through its investment management services."
Former Ace Group executive William O'Donnell will serve as CEO of ABR Re.
Channels:SAA/ALM
People:William O'Donnell
