American Re Forms American Re Capital Markets

American Re says it has formed American Re Capital Markets, Inc., a company that will provide products and services for mitigating risk in the financial markets. Initially, American Re Capital Markets will focus on the weather derivatives market, protecting both buyers and sellers of weather-dependent products and services against significant fluctuations in weather conditions.

American Re Capital Markets, Inc. is part of American Re Financial Products, which is headed by Ruby Schmidt, executive vice president of that unit. Schmidt will also serve as president of American Re Capital Markets, with Dominic Addesso and Lars Toomre acting as its primary client contacts for weather derivatives business.

"We are enthusiastic and optimistic about this new company and the capabilities it will provide," Schmidt says. "It allows American Re to be a leading provider of alternative risk management solutions brought about by the convergence of insurance and capital markets."

Castlebridge Partners, LLC, a risk consultancy based in Chicago, will act as an authorized representative for American Re Capital Markets in weather-related swap products.