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Member, Beacon International Group, Ltd.
PEMBROKE, Bermuda--Montpelier Re Holdings Ltd. is planning a U.S. initial public offering of as much as $250 million in stock.
Pembroke-based Montpelier Re Holdings on Thursday filed for the IPO with the U.S. Securities and Exchange Commission. Much of the proceeds from the offering will be used to support the company's Bermuda-based underwriting unit, Montpelier Reinsurance Ltd., said K. Thomas Kemp, chief financial officer of Montpelier Re Holdings.
The share price and the number of shares to be offered have not been determined, according to Mr. Kemp. Montpelier Re was formed in December of last year with $1 billion in capital to provide reinsurance capacity after the Sept. 11 terrorist attacks caused an already hardening marketplace to further constrict.
The SEC filing also shows that earlier this week, Montpelier Re Holdings agreed to invest around $60 million in Wellington Re, a London-based reinsurer being formed by Wellington Underwriting P.L.C. Montpelier Re Holdings is part of a group of investors that are committing $650 million to the new reinsurer, which will write property and casualty reinsurance.