Blue Capital Re targets IPO
Bermuda-based Blue Capital Re, which offers collateralised reinsurance in the property cat space, has registered its intent to make an IPO with the US Securities and Exchange Commission.
Blue Capital is a subsidiary of cat specialist, Montpelier Re.
Through the IPO Blue Capital is likely to look to take advantage of rising investor interest in the collateralised and cat reinsurance space.
The number of shares and their price is yet to be determined. Deutsche Bank Securities will act as book-runner on the deal.
By listing on a major global exchange like New York it should help Montpelier Re will potentially raise much more interest in reinsurance as an asset class and help it to access a wider third-party capital base.
Documents filed with the SEC show that Montpelier Re is seeking to dual list this new reinsurance holding firm on both the New York Stock Exchange and Bermuda Stock Exchange.
Blue Capital Reinsurance Holdings has two subsidiaries, Blue Capital Re, a Bermuda domiciled special purpose insurer and Blue Capital Re ILS. Blue Capital Re is the vehicle through which Blue Capital Reinsurance will undertake its collateralised reinsurance underwriting activities.
Blue Capital Reinsurance Holdings will work closely alongside Blue Capital Management, the third-party capital and reinsurance-linked fund management arm of Montpelier Re. There will be an investment management agreement between the two entities, meaning that Blue Capital Management will provide investment management services to the reinsurer.
