Abuse of side pockets in the financial crisis - when hedge funds locked in investors to avoid having to sell off discounted assets - has made the practice less palatable in the wider financial markets.
The strategy of Langhorne Re, the closed-ended life fund set up last month by RenaissanceRe and life reinsurer Reinsurance Group of America (RGA), will be based largely around a leveraged asset play, according to sources.
AIG's surprise move to take over AlphaCat parent Validus continues the trend for reinsurer-affiliated asset managers to dominate M&A activity within the ILS management sector.
Swiss Re said it was in preliminary discussions with Japan's SoftBank Group that could lead to a significant minority investment in the big European reinsurer by the conglomerate.
XL Group shares jumped 12.5 percent yesterday after a Bloomberg report said the Bermuda-based (re)insurer was drawing takeover interest from Allianz and possibly others.
