Gerova Holdings is to set up its the headquarters of its insurance operations in Bermuda. The company is a subsidiary of the international specialty reinsurer Gerova Financial Group, which was set up in January this year. Its offices will be located in Cumberland House, in Hamilton. Gerova also has operating insurance subsidiaries in Barbados and Ireland.

”We are excited to establish our base in Bermuda,” said Lou Hensley, Gerova’s chief executive officer Lou Hensley in a company statement released yesterday.

”We believe that Bermuda is an attractive location for conducting our insurance operations due to Bermuda’s strong locally based insurance and reinsurance infrastructure, deep pool of local insurance talent, excellent availability of cost effective third-party services providers, political and economic stability, and easy access from major East coast US cities.

Gerova announced the appointment of Mr. Hensley to run its insurance operations on March 23.<

The CEO is no stranger to the Island, having served as an executive of Wells Fargo’s Bermuda-based reinsurance subsidiary, Union Hamilton Reinsurance Ltd.

Gerova Finacial Group was incorporated in the Cayman Islands in January “to take advantage of opportunities arising from financial market dislocations”, the company said at the time.

In addition to underwriting, Gerova makes what it describes as high-yield senior secured commercial loans to middle market companies in select industries.

At the time of its January 2010 public listing, Gerova acquired some $650 million in equity capital, including an existing loan portfolio at what the company believesd was a significant discount from its value.

The company has had an extraordinary trading history on the New York Stock Exchange Amex. On Tuesday this week, the company’s share price rocketed more than 38 percent in a single day, from $11.51 to $15.96.

The company issued a press release at the end of that day saying it was not its policy to comment on unusual market activity or rumours.

On February 23, the company announced that NYSE Amex planned to delist its shares on the grounds that it did not have the sufficient number of shareholders - at least 400 - to meet the exchange’s minimum requirements.

Gerova requested a hearing, which was scheduled for April 12. The hearing was postponed by the Amex after the company provided information to substantiate its position that it was in full compliance with all of the Exchange’s original listing standards.

On April 13, the company announced a managerial shake-up which saw the resignation of both chairman and CEO Marshall Manley and chief operating officer Tore Nag.

Gary Hirst was appointed as chairman of the board, and Stuart Solomons was appointed was interim managing director.