Ex-Marsh Chief Gets Reinsurance License
November 5, 2005
NEW YORK, NY -- Various reports from the insurance industry cite that Chubb Corp. plans to assist a group consisting of former Marsh & McLennan private equity managers in setting up a new reinsurance company in Bermuda. Reports indicate that Jeffrey Greenberg, the former chief executive of Marsh & McLennan Companies recently ousted as a result of NY Attorney General Spitzer's inquiry into insurance sales practices, has received a license for a new Bermuda reinsurer.
IBA West (Insurance Brokers & Agents of the West) has indicated that "the company could be the first of a number of start-ups generated by this year’s hurricanes". IBA further reports that Jeffrey Greenberg, the former head of Marsh, is working to raise $1 billion in capital for Validus Holdings Ltd., a Bermuda insurer, which is registered to sell property and catastrophe coverage. Chubb, based in Warren, New Jersey, said it would hold a 16.25 percent stake in Harbor Point Ltd., the new Bermuda insurer that is expected to begin operations by the end of November with $1.5 billion in capital. In a news release, John Finnegan, Chubb’s chairman and chief executive, said that the recent catastrophes had caused dislocations in the reinsurance market.