Novae has  hired  Gunther Saacke, formerly with Converium and latterly head of reinsurance at Endurance UK to run its newly launched dedicated reinsurance business unit,  Novae Re.

It will be staffed by a 12 strong team based in London and Zurich with Novae saying the decision to enter the reinsurance market was to take advantage of improving conditions in the reinsurance market and “optimise deployment of the Group’s capacity”. It will also look to further the groups Continental European operations.

Mr Saacke will be supported by Johannes Goebel, formerly head of reinsurance at Allianz Global Risks, agriculture specialist Karl Schneider and Willi Schuerch from Partner Re, who will head Catastrophe and Specialty underwriting, which will be based in Zurich, while Steve Tidd, David Ahmad and Alan Tomlinson will spearhead the Group’s continued London Market development.

The group said Novae Re will operate as a discrete unit, underwriting business through Lloyd’s Syndicate 2007 and focusing on property, liability, agriculture, engineering and other specialty business.

It will begin writing new business with effect from January 1, and the underwriter said the new unit is expected to achieve incremental GWP of approximately £100 million in 2010, subsequently rising to some £200 million. The formation of the unit remains subject to FSA and Lloyd’s approval.

“With the formation of Novae Re we’re executing a strategic enhancement of our long-term focus on expert, profitable underwriting,” comments Novae underwriting director Peter Matson.  “While the construction of such an experienced and high-profile team is a clear statement of our intent to play a major role in this sector, the move enables us to meet key corporate goals, with the opportunity to benefit from our prudent capital deployment policy. Importantly for Novae, it will at the same time deliver risk diversification across both new territories and expanded business classes.”