Soros takes stake in reinsurance firm

BILLIONAIRE George Soros is ploughing some of his $13bn (£7bn) empire into a new reinsurance venture.

The Hungarian-born US financier is taking a major shareholding in Glacier Re, a Swiss-based company that plans to cash in on the bullish insurance market by launching in January.

Glacier will begin with just £160m of equity capital and plans to concentrate on niche markets such as catastrophe reinsurance, marine and energy and war and terrorism.

It is the latest high-profile launch in a sector that has already attracted the attention of the 'Sage of Omaha' Warren Buffett, as premium rates continue to hold at their recent high levels.

Soros, best known for making a fortune out of the pound's exit from Europe's Exchange Rate Mechanism in 1992, has an undisclosed stake in Glacier alongside Texas-based hedge fund HBK Investments.

His investment comes two months after he revealed plans to shift his group back to its core hedge fund activities by pulling out of real estate and credit.

A Glacier spokesman said the billionaire's backing showed the health of the sector. 'The speciality end of the market is still incredibly healthy. The market, rating environment, terms and conditions, are great.'

He added that Soros saw Glacier as a long-term investment. 'Soros and HBK are not looking at this as an IPO play at this stage,' he said.