Posted on 04 Jan 08
Two insurance industry leaders have announced the formation of an underwriting management company to take advantage of the rapidly changing insurance industry marketplace. James N. Stanard, former CEO of Renaissance Re and Rod Fox, former CEO of Praetorian, have joined forces to launch New Asset Class Management. It will be wholly owned by F&S Ventures, a privately held investment company.
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.
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 will specialize in rigorous underwriting using resident expertise and the latest technology.
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 will advise investors on insurance industry investments and/or manage their holdings. “Insurance is clearly the New Asset Class,” explained Mr. Fox, CEO. “Our goal is to help insurance operators and risk investors make the most efficient use of their capital.”
The amount of the companys starting capital or projected first-year earnings was not disclosed. Headquartered in Greenwich, CT., New Asset Class also expects to have offices in New York and Bermuda.
Jim Stanard, Chairman of New Asset Class, was the founder, Chairman and CEO of Bermuda Reinsurer RenaissanceRe, which had the highest ROE in the reinsurance industry over its first 10 years of operation. Prior to that, Mr. Stanard was Executive Vice-President of USF&G and Executive Vice-President of F&G Re.
Rod Fox, CEO of New Asset Class, was CEO of $2B specialty insurer Praetorian, a subsidiary of Hannover Re which was recently sold to QBE. Prior to that, he was CEO of Benfield Inc., the US subsidiary of London-based reinsurance intermediary Benfield Group. Prior to Benfield, Mr. Fox was President of E.W. Blanch Co.