Two insurance industry leaders announced today they had formed an underwriting management company to take advantage of what they see as a "rapidly changing insurance industry marketplace."

Joining forces to launch New Asset Class Management are James N. Stanard, former chief executive officer of Renaissance Re, and Rod Fox, former CEO of Praetorian. The operation will be wholly owned by F&S Ventures, a privately held investment company.

The amount of the company's starting capital or projected first-year earnings was not disclosed. It is based in Greenwich, Conn.

The firm's announcement said New Asset Class will generate income from three sources: managing and acquiring large portfolios of insurance risk; managing risk portfolios for insurance carriers; and providing advice and risk analysis to insurers, hedge funds, private equity firms and other investors interested in insurance risks.

The executives said in a statement that while insurance rates are softening in some sectors and remaining firm in others, underwriting remains the key determining factor in insurance profitability.

New Asset Class they promised will specialize in "rigorous underwriting using resident expertise and the latest technology."

They noted that thanks to high returns and the type of risk not correlated with conventional capital markets investments, the investment community has shown growing interest in insurance risk.

New Asset Class, they said, will advise investors on insurance industry investments and/or manage their holdings. "Insurance is clearly the New Asset Class," explained Mr. Fox. "Our goal is to help insurance operators and risk investors make the most efficient use of their capital."

The new venture said it expects to have offices in New York and Bermuda as well as its Greenwich location.

Mr. Stanard, who will serve as chairman of New Asset Class, was the founder, chairman and CEO of Bermuda reinsurer RenaissanceRe.

Mr. Fox, the CEO of New Asset Class, was CEO of specialty insurer Praetorian, a subsidiary of Hannover Re which was recently sold to QBE.

The company said it expects to announce key investments in the near future.

Special Reports /

Stanard, Fox Form Underwriting Management Firm

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