NEW YORK, Nov 15 (Reuters) – Investment manager Greenlight Capital has formed a new offshore reinsurance company to capitalize on growing demand for insurance products, company founder David Einhorn said at a conference on Tuesday.
The formation of Greenlight Capital Re comes amid a spate of recent moves by hedge funds into Bermuda and Caribbean-based reinsurance companies, which provide catastrophe insurance to insurance companies.
Earlier this month, Citadel Investment Group, a $12 billion hedge fund based in Chicago, disclosed that it formed its second reinsurance company, New Castle Reinsurance Co. Ltd., with $500 million in backing.
