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Gemini Re.

After months of great expectations for one of Bermuda's newest reinsurance companies, Gemini Re, the surprising departure of Gemini's two most prominent founders has left the company's future somewhat cloudy. Indeed, Gemini CEO David Brown and CFO Grant Gibbons-Bermuda's former finance minister-pretty much up and walked away in May, and initially no one was really saying why.

While the two executives have said not much more than ,that they left due to "strategic difference" with Gemini's other principals, more recent press reports have quoted John Plimpton, a Gemini Re director, as saying ,that Brown and Gibbons left because of dispute over their respective paychecks. Gibbons, for his part, has denied that, calling it an excuse to whitewash his and Brown's disagreement on Gemini Re's basic structure, according to a recent Reuters report. Gemini's approach would be to supplement income from its traditional risk-taking by emphasizing hedge fund activity.

Industry observers don't expect Gemini's initial public offering, which was structured to raise nearly a half-billion dollars late this year, to go forward anytime soon. More to the point, the disastrous downfall of whiz-kid hedge fund Long Term Capital Management earlier this year may have cast a pall on any financial strategies that rely on the heavily leveraged approach that hedge funds may take. The sticking fear of a stock and bond market downturn is often enough to cool the jets of creative financing.
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Author:Damsker, Matt
Publication:Risk & Insurance
Date:Aug 1, 1999
Words:232
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