Posted on 26 Jul 2013 by Neilson
XL Group PLC (XL) and Stone Point Capital LLC formed a new company that will manage investments in insurance-linked securities and other products in reinsurance capital markets.
The firms intend to invest up to $135 million in funds, potentially with third-party investors.
XL Group, which, through subsidiaries, provides insurance and reinsurance coverage to companies, owns 75% of the company, and Stone Point, a private equity firm focused on financial services, owns the remaining 25%.
The new company is based in Bermuda.
Despite Superstorm Sandy last autumn, XL Group has been aided by a relative lack of natural disasters in recent quarters. It said earlier this month that it expected second-quarter catastrophe losses of about $135 million.
XL Group is scheduled to report second-quarter results Monday.
