Ace Ltd is teaming up with BlackRock Financial Management, the world’s largest money manager, to create a new Bermuda-based reinsurance venture.

The companies are seeking to raise between $800 million and $1.3 billion for the new business, named ABR Reinsurance Capital Holdings Ltd, according to a regulatory filing.

ABR was incorporated on December 15 last year, according to the Bermuda Registrar of Companies.

The move is a further example of the convergence between the capital markets and the reinsurance industry, which has taken the form of hedge fund-backed reinsurers such as Third Point Re and insurance-linked securities, whose investors include multi-billion dollar pension funds.

Ace, which started operations in Bermuda in the 1980s, is now based in Switzerland, but retains significant underwriting businesses on the Island.

BlackRock has handled investments for Ace subsidiaries. The money manager oversaw about 22 per cent of the insurer’s investment assets, according to a regulatory filing last year.