Start-up Aligned Re to base itself on Bermuda

Bermuda will be the base of a new hedge fund reinsurer backed by money from insurer Enstar Group and managed by UBS O’Connor, the hedge-fund within Swiss bank UBS.

The venture, called Aligned Re, has appointed a chief executive and is in the process of hiring staff on the island.

Enstar Group has already committed $100 million to the Bermuda venture, which will likely be complemented by third-party capital. Enstar will act as reinsurance manager while UBS O’Connor will act as investment manager for Aligned Re.

Nicholas Packer, executive vice president and joint chief operating officer of Enstar and chief executive of StarStone has been appointed chief executive of Aligned Re, though he will also continue in his existing roles until December 31, 2016.

Subsidiaries of StarStone Insurance, part of the Enstar group, are expected to purchase reinsurance via quota share agreements with Aligned Re. In addition, certain Enstar run-off subsidiaries are expected to enter into loss portfolio transfer agreements with Aligned Re, Enstar has revealed.

Enstar has historically specialised in the acquisition and management of legacy or run-off insurance and reinsurance businesses but it has also moved increasingly into managing active underwriting firms through Atrium and Torus.