NEW YORK, Dec 20 (Reuters) - James Stanard, former chief executive of RenaissanceRe Holdings Ltd (RNR.N: Quote, Profile, Research) who resigned amid a regulatory probe into the reinsurer's accounting, has formed a new insurance management company.
New Asset Class, based in Greenwich, Connecticut, will manage and acquire large portfolios of investment risk, manage insurance risk portfolios and provide risk analysis for clients including insurers, hedge funds and private equity funds, according to a statement on Thursday.
The venture is being launched by Stanard and Rod Fox, former CEO of Praetorian, which was Hannover Re's (HNRGn.DE: Quote, Profile, Research) U.S. specialty arm until its June sale to Australian insurer QBE (QBE.AX: Quote, Profile, Research).
New Asset plans to also open offices in New York and Bermuda, and said it will disclose investment details shortly. The company is wholly owned by F&S Ventures, a privately held investment company. No other financial details were disclosed.
A spokesman for the firm could not immediately be reached to comment on whether F&S is owned by Stanard and Fox, or on the status of civil charges which were last year brought against Stanard by the U.S. Securities and Exchange Commission.
Stanard founded Bermuda-based RenaissanceRe in 1993, and was chairman and chief executive until November 2005 when he stepped down as a result of the SEC's probe into transactions between RenRe and Bermuda finite risk reinsurer, Inter-Ocean Reinsurance Company Ltd.
Reinsurers provide insurance to other insurers, thereby spreading the risk of losses among several carriers.
Finite risk reinsurers, a niche market that flourished in years past, came under scrutiny in 2004 when former New York Attorney General Eliot Spitzer launched a probe into whether companies were using finite policies more as business loans to "smooth" earnings, or reduce their variability over time, than for bona fide risk transfer.
source: reuters.com
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