Greenlight Re opens for business in Cayman Islands

The Cayman Islands Monetary Authority (CIMA) has welcomed a new licensee, Greenlight Re, a Cayman-based global property and casualty reinsurance company, to the islands.The CIMA said in a press release that the recent licensing of a company providing open-market reinsurance was “a first for many years in the jurisdiction.”Greenlight Re “has more than US$220 million in capital and specializes in custom tailored reinsurance solutions,” the CIMA announced.A.M. Best reported that Greenlight Re is funded by New York City-based private equity firm Greenlight Capital Inc. The CIMA notes Greenlight Re will be working “with local insurance managers to provide reinsurance for Cayman-licensed captives.”The CIMA directors commented that Greenlight Re’s decision to set up shop in the Caymans “was a significant endorsement of the Islands and will hopefully pave the way for other open-market reinsurers to follow.”The Cayman Islands’ financial rival in the reinsurance area, Bermuda, has been at the centre of a number of new reinsurance start-ups since Hurricanes Katrina and Rita.According to A.M. Best, Bermuda’s new entries include: New Castle Re, capitalized with $500 million from funds managed by Chicago-based Citadel Investment Group LLC; Harbor Point Re, funded by Chubb Corp. and private equity investors led by Stone Point Capital LLC’s Trident III LP fund; and Validus Holdings, which is raising private funding and has the backing of Aquiline Capital partners LLC, a private equity firm headed by former Marsh & McLennan Cos. CEO Jeffrey Greenberg.