The reinsurance fund launched by Bermuda-based reinsurer Montpelier Re has deployed $57 million of the capital raised at its share issue, the company said yesterday.Investors put $100.1 million into the new reinsurance venture, called Blue Capital Global Reinsurance Fund, when the firm listed on the London Stock Exchange’s specialist fund market in December.Blue Capital said that $57 million has been deployed via 28 reinsurance deals through its Blue Water Master Fund Ltd, amounting to 58 percent of the initial capital raised.Blue Capital makes its money by selling property catastrophe reinsurance to primary insurers, putting up its own cash as collateral to absorb potential claims.It offers an annual net return to shareholders of ten percent above the London Interbank Offered Rate (LIBOR), the average rate at which banks lend to each other.The deals were done during the January renewals, when reinsurers renew billions of dollars worth of contracts with its insurance company clients at the start of 2013.The remaining money from the share issue will be used for investment in the April, June and July 2013 reinsurance renewals, Blue Capital said.Reinsurance funds such as Blue Capital offer exposure to the sector without buying shares in listed reinsurers, which are mostly trading below asset value due to lingering suspicion of financial stocks following the 2008 crisis.A number of reinsurers, such as Validus, Argo, Lancashire and Alterra have launched specialist reinsurance companies to take advantage of investor demand and attractive reinsurance pricing.