Montpelier Re Holdings Ltd. on Wednesday said it has launched an asset management platform for institutional and retail investors as a means to address market demand for insurance-linked securities.

The new entity, Blue Capital Management Ltd., will offer investors a range of catastrophe reinsurance-linked investment products, Hamilton, Bermuda-based Montpelier said. William Pollett, Montpelier's chief corporate strategy and development officer, will serve as president of Blue Capital Management Ltd., while Montpelier's chief investment officer, Jason Pratt, has been named president of the company's U.S.-based investor marketing arm, Blue Capital Advisors Ltd.

“Montpelier has been successfully managing third-party capital since 2004, and Blue Capital represents the latest step in the expansion of our underwriting partnership business,” Montpelier President and CEO Chris Harris said in a statement. “Blue Capital broadens the product mix we can offer clients, and investors benefit from Montpelier's long-established underwriting expertise and relationships.”

Blue Capital also announced the completion of its initial public offering of a closed-ended feeder fund, which is expected to be admitted to trading on the Specialist Fund Market of the London Stock Exchange and listed on the Bermuda Stock Exchange on Thursday. Via a segregated account, Blue Capital Global Reinsurance Fund Ltd. will invest in a diversified portfolio of fully collateralized reinsurance-linked contracts and other investments carrying catastrophe-linked exposures.

Montpelier provided $50 million of the $100 million allocated to the fund, as well as dedicated analytics, risk management, claims and actuarial teams.

“Blue Capital is delighted to launch this listed fund, which will provide targeted exposure to the reinsurance market via a partnership with Montpelier's global property catastrophe franchise,” Mr. Pollett said in the statement. “We believe Montpelier’s reach and expertise will allow Blue Capital to construct a diversified portfolio with attractive risk-adjusted return characteristics.”