SAC Capital Advisors has reportedly reached an agreement with an industry consortium headed by insurance-industry expert Brian Duperreault to divest its reinsurance business based in Bermuda.
Besides Duperreault, the investor group includes affiliates of the New York hedge-fund firm Two Sigma Investments, private-equity firms Capital Z Partners Management and Performance Equity Management, and some institutional investors.
Sources familiar with the matter were quoted by the Wall Street Journal (WSJ) as saying that the acquisition of SAC Re is likely to conclude in December, although they declined to divulge further terms of the deal.
It is believed that the reinsurance business will be valued in between $500m to $1bn, a person familiar with the deal told the Journal.
Following completion of the proposed transaction, SAC Re will be rebranded as Hamilton Re, while Duperreault will assume the post of chief executive.
"We believe that there is a significant opportunity to bring a fresh approach to insurance and reinsurance, one based not just on world-class underwriting, but also a strong foundation of large data analytics, research, and fully-integrated technology," Duperreault said in a statement.
With a capital of $500m, SAC Re started operations in 2012, and has approximately 20 employees. Duperreault noted that most of the employees are expected to remain with the company.
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