Citadel forms catastrophe reinsurer New Castle Re - AM Best

SAN FRANCISCO (AFX) -- Citadel Investment Group, the $10 billion hedge fund firm run by Ken Griffin, has formed a new catastrophe reinsurer called New Castle Re, rating agency A.M. Best said on Friday. The Bermuda-based firm will have $500 million in capital and plans to underwrite property-per-risk, workers' compensation catastrophe and terrorism coverage in addition to property catastrophe reinsurance, A.M. Best said. Although it was likely planned earlier, Citadel's move comes in the wake of unprecedented hurricane losses that have rocked the insurance industry and may well spark a period of rising prices, especially for types of coverage such as catastrophe reinsurance. A.M. Best said it gave New Castle Re a financial strength rating of A- and a credit rating of a-.

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