Montpelier Re leverages capabilities through Blue Capital

Bermuda property cat specialist, Montpelier Re has launched a London-based asset management platform offering “innovative catastrophe reinsurance-linked investment products” to investors.

As Chris Harris, CEO of Montpelier Re outlined, the company has been managing third-party capital since 2004 and Blue Capital represents the “latest step in the expansion of our underwriting partnership business”. Harris explained that the move enables the reinsurer to broaden the product offering it is able to extend to clients, while investors can draw upon the company’s “long-established underwriting expertise and relationships”.

William Pollett, the reinsurer’s chief corporate strategy and development officer will head up the new entity as president, while retaining his existing responsibilities at Montpelier Re.

Montpelier Re has also announced the completion of its IPO of Blue Capital Global Reinsurance Fund, which will “invest in a diversified portfolio of fully collateralised reinsurance-linked contracts and other investments carrying exposures to insured catastrophe event risks via a segregated account and will be backed by Montpelier's dedicated analytics, risk management, claims and actuarial teams”.

The “closed-ended feeder fund” is expected to be admitted to the Specialist Fund Market of the London Stock Exchange and listed on the Bermuda Stock Exchange (BSX) this week. The company received a final allocation of $100 million to the fund, half of which was provided by Montpelier Re.  

The move by Montpelier Re appears to be the latest in a string of moves by Bermuda reinsurers looking to develop their offering in the ILS space. Island players are blazing a trail in the convergence space and Montpelier Re’s move is likely to further strengthen the case of Bermuda capabilities and the BSX.