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Harbor Point Announces Formation Of Bay Point Re
PEMBROKE, Bermuda, June 14, 2006 - PRNewswire/ -- Harbor Point Re Limited ("Harbor Point"), a subsidiary of Harbor Point Limited, today announced the formation of Bay Point Re ("Bay Point"), a special purpose "side car" vehicle formed for the purpose of reinsuring certain short-tail business written by Harbor Point. Harbor Point and Bay Point have entered into a quota share reinsurance agreement pursuant to which Harbor Point will cede to Bay Point 30% of certain lines of short-tail business written by Harbor Point for the 2006 and 2007 underwriting years. The quota share will be collateralized by a trust established by Bay Point that will include the capital and surplus of Bay Point, as well as the ceded reinsurance premiums received from Harbor Point. Several funds managed by GoldenTree Asset Management, LP are the principal investors in Bay Point.
John Berger, CEO of Harbor Point Limited, said, "Capacity in many catastrophe-exposed lines is extremely tight. Bay Point will give us additional capacity and will be a strategic tool that allows us to capitalize on the opportunities currently available in the market, as well as those expected in the second half of the year. Bay Point's investors will be able to participate in the attractive current market opportunities, while being fully aligned with Harbor Point through our 70% retention on the quota share."
Goldman, Sachs & Co. acted as the placement agent on the transaction.
Harbor Point Limited, through its subsidiary Harbor Point Re Limited, is a global property casualty reinsurance company with headquarters in Pembroke, Bermuda and a subsidiary in Bernardsville, New Jersey. Harbor Point was formed in December 2005 with the acquisition of Chubb Re from The Chubb Corporation. Harbor Point was sponsored by Trident III, L.P., a private equity fund managed by Stone Point Capital LLC. Harbor Point has in excess of $1.3 billion of capital and is rated A (Excellent) by A.M. Best and A-(Excellent) by Standard & Poor's.
Contact Information:
Gayle Gorman
Harbor Point Limited
(441) 294-6743
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