A group of investors has reached an agreement to purchase SAC Capital Advisors’ reinsurance business.
The Wall Street Journal reported that the group led by insurance industry veteran Brian Duperreault, is expecting to close the deal sometime this month for between $500 million and $1 billion.
SAC Re will be renamed Hamilton Re upon closure of the deal.
Private equity firms Capital Z Partners Management and Performance Equity Management, along with several undisclosed institutional investors are among the group that is set is acquire SAC Re. SAC Capital and its founder Steve Cohen will not retain any involvement with Hamilton Re.
According to an earlier eVestment article, Connecticut-based SAC Capital has been considering selling the reinsurance unit as the firm undergoes its insider trading probe by the U.S. government. SAC, which admitted to insider trading in November, was charged with wire fraud and four counts of securities fraud for allegedly allowing insider trading to go unchecked from 1999 through at least 2010. The Securities and Exchange Commission also charged Cohen for failing to prevent insider trading at his firm.
SAC Re had $567.8 million in assets at the end of 2012.