Validus and Munich Re launch sidecars
Two more reinsurance groups have launched sidecars based on Bermuda.
Validus Holdings has joined with other investors to form the $160 million AlphaCat 2014, a special purpose vehicle formed for the purpose of writing collateralised reinsurance and retrocessional contracts for the 1/1/2014 renewal season.
Of the $160 million of equity capital committed to AlphaCat 2014, third party investors contributed $138 million or 86.25 percent of the funding and the balance was provided by Validus.
Ed Noonan, chief executive of Validus, said: “AlphaCat 2014 reflects the continued importance of Validus' franchise in the global property catastrophe reinsurance market. We are pleased with the significant level of investor support which reflects on the scale of Validus' operations, the skill of our underwriting team and the AlphaCat infrastructure we have developed to manage third party capital.”
Business for AlphaCat 2014 will be underwritten by AlphaCat Managers, which it will be paid a commission for originating the business and a profit commission based on the vehicle's underwriting results.
Meanwhile, Munich Re has reportedly formed Eden Re, a Bermuda domiciled special purpose vehicle registered on the Bermuda Stock Exchange on January 3. The transaction comprises a single $63 million Series 2014-1 tranche of notes due in 2017.
