Jeff Greenberg Launches Reinsurer

Bermuda firm backed by former Marsh chief executive

Validus Reinsurance Ltd.–a Bermuda-based startup backed by an investment group headed by former Marsh and McLennan Companies Chief Executive Officer Jeffrey Greenberg–announced its formal launch last week with $1 billion in capital.

Validus Re noted it had received a rating of A-minus (Excellent) from A.M. Best and is approved by the Bermuda Monetary Authority as a Class 4 reinsurer.

The company was formed to capitalize on favorable market conditions following large catastrophe losses, the reinsurer noted.

Validus Re said it has experienced underwriters, modelers and actuaries to handle each business class.

The company said its investment strategy will be conservative and designed to emphasize the preservation of invested assets and to provide liquidity for the prompt payment of claims.

The chairman and CEO of Validus is Edward Noonan, previously acting CEO of United America Indemnity and president and CEO of American Reinsurance Company. George Reeth, former chairman and CEO of Willis Re North America, has been appointed as president of Validus.

Validus Re is a wholly-owned subsidiary of Validus Holdings Ltd, incorporated in Bermuda. Aquiline Capital Partners LLC ('Aquiline'), a specialist financial services investment firm, is the founder and lead investor in Validus Holdings, Ltd.

Aquiline's investment team is led by Mr. Greenberg, who has joined the board of directors. Mr. Greenberg was forced out as CEO at MMC in October 2004 after the company's Marsh brokerage arm was involved in a scandal over bid-rigging.

Other investors represented on the Aquiline board include Goldman Sachs, Merrill Lynch Global Private Equity, Vestar Capital Partners and New Mountain Capital.

Validus Re said it will conduct its operations and be managed and controlled from Bermuda.

Infographic, with Jeff's mug:

Flag: New Kid On The Block

Head: What Will Validus Re Write?

Jeff Greenberg, former CEO of MMC, heads an investment team that launched Validus Re in Bermuda. The company's underwriting strategy focuses on “creating a balanced, diversified portfolio of low-frequency, high-severity property and specialty business” in several categories:

o Property per risk

o Property-catastrophe

o Property proportional

o Workers' compensation catastrophe

o Marine and energy

o Aerospace

o Marine and aviation war

o Terrorism

o Retrocessional coverage

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Jeff Greenberg Launches Reinsurer

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