ABR Re seeks USD1.3 bn funding

The joint venture between ACE and fund manager Blackrock, ABR Re, will seek to raise up to USD1.3 billion of capital.

This was stated in a Securities and Exchange Commission filing, which noted that the vehicle is seeking to raise funds between USD800 million and USD1.3 billion.

The document estimates a target of USD1 billion in proceeds, assuming that the issuer will pay placement agents a fee equal to two percent of gross proceeds.

Citigroup Global Markets, Deutsche Bank Securities, Morgan Stanley & Co and Morgan Stanley Smith Barney are helping to raise the funds.

It appears that, in addition to reinsuring a chunk of ACE’s ceded premium, the vehicle could also give investors access to third party risks. This development would be especially interesting if those risks came from the primary side of the business and included non-cat business – risks that have rarely been touched in this type of model so far.