ABR Re launches after $800m capital raise
ACE and fund manager Blackrock have officially launched ABR Re after raising $800 million of capital.
The capital raise is at the lower end of the $800 million to $1.3 billion range sought. A Securities and Exchange Commission filing estimated a target of $1 billion in proceeds.
ACE will be the sole source of reinsurance risks ceded to ABR Re, and BlackRock will be ABR Re’s exclusive investment management service provider.
The joint venture will underwrite a portion of a broad 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.
William O’Donnell will serve as chief executive officer of ABR Re. He previously served as senior vice president, distribution management, and global client executive, global accounts, ACE.
“ABR Re is a unique company that complements the traditional reinsurance market,” said O’Donnell. “The reinsurance market is undergoing cyclical and structural changes, driven by a substantial increase in alternative sources of capital and new risk technology including data analytics and portfolio management.
“ACE and BlackRock bring extraordinary vision, experience and a long-term commitment to this endeavour. ACE is a global insurer with a proven track record as an originator and manager of risk that produces a consistent underwriting profit. BlackRock brings superior investment and risk management experience with multi-asset, multi-strategy investment portfolios. With these strengths, as well as significant investor interest, we are excited about the long-term opportunities for ABR Re.
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