New Hong Kong reinsurer pending approval from regulator

Nine Merchants Re, which hopes to establish itself as a new Hong Kong-based reinsurer, is currently pending discussions with the Hong Kong regulator.

The reinsurer plans to operate a total return model and to have an initial capital in the region of $500 million.

Nine Merchant Re would underwrite treaty reinsurance emanating from Asia-Pacific, with a focus on developed markets such as China, Korea, Japan, Australia and New Zealand.

Although it expects more than 60 percent of its portfolio to come from Asia-Pacific, it will also underwrite business from the US, UK and Europe for selected clients, according to plans.

The establishment of Nine Merchants Re as a new reinsurer in Asia Pacific is expected to be a talking point at the East Asian Insurance Conference (EAIC) which is taking place between Oct. 11 and Oct. 15.

“I expect there will be quite a bit of discussion around not only what its agenda will be but also about this as a reflection of what is happening in this part of world, where if people have the necessary expertise, they have the ability to raise half a billion dollars in China to support a global reinsurance strategy,” said Malcolm Steingold, CEO of Asia-Pacifc at Aon Benfield.

First Seafront Financial, an investment managing company involved in fund management, fund advisory and fund execution, is Nine Merchants Re's shareholder.

“Like Peak Re, Nine Merchants Re from day one will be looking to write a global reinsurance book. This part of the world is no longer inwardly focused but is looking beyond the opportunities within the Asia-Pacific region,” Steingold said.

Read our coverage of EAIC here.