ACE and BlackRock launch ABR Re
ACE Limited and BlackRock have launched ABR Reinsurance, an innovative, independent reinsurance company.
Through unique long-term arrangements, ACE Group will be the sole source of reinsurance risks ceded to ABR Re, and BlackRock will be ABR Re’s exclusive investment management service provider. ABR Re will underwrite a portion of a broad selection of reinsurance treaties that ACE places with the traditional reinsurance market and will invest its assets in a diversified and dynamic alternative investment portfolio managed by BlackRock, the world’s largest investment manager.
ABR Reinsurance Capital Holdings Ltd., ABR Re’s parent company, has raised approximately $800 million of capital through a private placement. ACE and a BlackRock affiliate have minority ownership stakes in the parent company. ABR Re’s investors will benefit from underwriting profit generated by ABR Re’s reinsuring a wide range of ACE’s primary insurance business and the income and capital appreciation BlackRock seeks to deliver through its investment management services.
William O’Donnell, formerly Senior Vice President, Distribution Management, and Global Client Executive, Global Accounts, ACE Group, will serve as Chief Executive Officer of ABR Re. “ABR Re is a unique company that complements the traditional reinsurance market,” says O’Donnell. “The reinsurance market is undergoing cyclical and structural changes, driven by a substantial increase in alternative sources of capital and new risk technology including data analytics and portfolio management. ACE and BlackRock bring extraordinary vision, experience and a long-term commitment to this endeavour. ACE is a global insurer with a proven track record as an originator and manager of risk that produces a consistent underwriting profit. BlackRock brings superior investment and risk management experience with multi-asset, multi-strategy investment portfolios. With these strengths, as well as significant investor interest, we are excited about the long-term opportunities for ABR Re.”