Greenlight Capital and a Texas-based group are planning to follow in the footsteps of Max Re, the Bermuda reinsurance company founded by Moore Capital and Capital Z, by setting up insurance companies. The move suggests that there is renewed life in the hedge fund-sponsored insurance space, which only a year ago many thought would be shut down by the Internal Revenue Service.
Greenlight founder David Einhorn has told investors that the company will underwrite other insurers, rather than consumers. At the same time, a yet unnamed Texas-based fund has started advertising for staff for a similar operation.
In June, the