A hedge fund has invested in a large life reinsurer.
Managers of Flagg Street Capital L.L.C., Cambridge, Mass., have told the U.S. Securities and Exchange Commission that it and related firms now own about 5.75% of the ordinary shares of Scottish Re Group Inc., Hamilton, Bermuda.
Flagg Street also is a major investor in companies such as Talk America Holdings Inc., New Hope, Pa., and Mariner Energy Inc., Houston.
Scottish Re, the second largest reinsurer in the U.S. life market, has run into problems with some of its reinsurance arrangements in the past few years, and company managers say they are trying to sell the company or find a “strategic investor” to put in large amounts of capital.