Toomre Capital Markets LLC

Real-Time Capital Markets -- Analytics, Visualization, Event Processing, and Intelligence

Flagstone reinsurer also forming in Bermuda

According to this article in the Royal Gazette of Bermuda, West End Capital, a Bermuda hedge fund management company, is about to launch yet another new reinsurer to be called Flagstone Reinsurance Ltd. Flagstone, and at least eight of the other reinsurers forming – Ariel, Arrow, Amlin, Harbor Point, Hiscox, Lancashire, New Castle and Validus – already have approval from Bermuda regulators to operate on the Island. This new capacity appears to be forming to take advantage of expected higher property catastrophe reinsurance rates for the 2006 renewals and might put a damper on the expected rate increases of existing reinsurers trying to recover from the massive losses in the 2005 hurricane season.