MMC Capital, the private equity subsidiary of Marsh & McLennan Companies, has formed a new insurance and reinsurance company, AXIS Specialty, to take advantage of the capacity shortage in the insurance industry.
The capacity shortage is the result of the terrorist attacks in the US on September 11, 2001.
MMC said the new company was expected to be capitalised at approximately $1bn (£680.4m) and to start underwriting in Bermuda during the fourth quarter of 2001. Trident II, a fund managed by MMC Capital, will be the lead investor.
The management team will be led by John Charman as chief executive and Robert Newhouse Jr as chairman.
Charman was formerly the president of ACE International and was previously chief executive of Tarquin. Newhouse Jr was formerly the chairman of Mid Ocean and prior to that was vice chairman of MMC.
