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 The deal for Bermuda-based SAC Re Ltd. is expected to close in
December, a spokesman representing Duperreault and the investor
group said on Monday, declining to specify terms. SAC Re will be
renamed Hamilton Re upon the deal's closing, with Duperreault
becoming chief executive officer.
The sale of SAC Re, which began operations in 2012 with $500 million
in capital from Cohen, Capital Z Partners and other investors, had
been expected.
SAC pleaded guilty in November to insider trading, accepting
responsibility for criminal behavior by at least six of its
employees. That admission could cost the firm $1.8 billion in civil
and criminal penalties. A federal judge still needs to approve SAC
Capital's criminal guilty plea.
As part of the settlement, SAC agreed to give up managing outside
investors' money--terms that would preclude it from investing
premiums for a reinsurance company.
"We are proud of our role in founding SAC Re, but we are now
focusing on our transition to a family office and our core investing
business," an SAC spokesman said in a statement.
Duperreault brings significant insurance industry leadership and
underwriting experience to Hamilton as the former CEO of ACE Limited
and Marsh & McLennan Companies.
Duperreault left Marsh in December 2012 following a five-year period
during which he led the company's turnaround to over $1 billion in
annual profitability. Prior to joining Marsh, Duperreault led ACE as
president and CEO for almost 10 years from 1994 to 2004, a period
during which the company's shareholders' equity grew from
approximately $1 billion to more than $9 billion.
In addition to Duperreault, those in the investor group buying SAC
Re include affiliates of the New York hedge-fund firm Two Sigma
Investments LLC, private-equity firms Capital Z Partners and
Performance Equity Management, and some institutional investors.
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Two Sigma Investments, LLC will become the sole investment manager
for Hamilton Re's investable assets.
"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. I am very
excited to partner with Two Sigma in this endeavor," Duperreault
said in a statement.
"Two Sigma and I have been working together towards the launch of a
new company in the industry and this transaction provides the
ability to move forward on an accelerated timetable with a strong
team in Bermuda."
(Reporting by Jennifer Ablan; editing by
Bob Burgdorfer)
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