HAMILTON, Bermuda--Aurigen Re Capital Ltd. has raised $500 million Canadian ($494.6 million) to launch a life reinsurer in Canada.
The company plans to use the capital to offer life and health reinsurance to Canadian life insurers and banks with life insurance operations, said Yana Gagne, chief business development officer for Aurigen Canada Ltd., Aurigen Re's planned Toronto-based business unit.
Alan Ryder, former president of Employers Reassurance Canada, General Electric Co.'s Canadian life reinsurance business, will serve as president and chief executive officer of Aurigen Canada.
Ms. Gagne said the company is awaiting regulatory approval and that she expects business to commence in the second quarter of 2008.
Major investors in the insurer include Toronto, Canada-based EdgeStone Capital Partners Inc., London-based Englefield Capital L.L.P., New York-based Pine Brook Road Partners L.L.C. and New York-based Soros Strategic Partners L.P.
Aurigen Re Capital, which is based in Hamilton, Bermuda, became a holding company in September. Ms. Gagne said Aurigen Re Capital plans eventually to expand its life reinsurance business into Europe and the United States.