Montpelier invests $133 million into new reinsurer

Montpelier Re Holdings Ltd. (NYSE: MRH) has committed a $133 million investment into the capitalization of Blue Ocean Reinsurance Ltd., a new Bermuda reinsurer.
Blue Ocean, which has been capitalized with commitments totaling $300 million of common and preferred equity from Montpelier and other investors, will offer retrocessional protection in the property catastrophe market.
Blue Ocean will provide fully collateralized retrocessional protection to parties other than Montpelier and has no current plans to obtain a rating from any rating agency. Initially, Blue Ocean anticipates underwriting gross aggregate policy limits in excess of $350 million.
Montpelier Agency Ltd., a subsidiary of Montpelier, will perform underwriting services for Blue Ocean, enabling Montpelier to leverage its skill set on a capital base distinct from Montpelier Reinsurance Ltd. John Bassett, a director of Montpelier Agency Ltd. and previously responsible for Montpelier’s retrocessional business, will oversee the underwriting.
Anthony Taylor, CEO of Montpelier, says this action falls in line with the Company’s plans to pursue non-traditional approaches to the management of its business.