Aspen Re establishes Bermuda-domiciled SPI

Aspen Re's captial markets division has launched Silverton Re, a Bermuda-domiciled special purpose insurer formed to support the reinsurer’s global reinsurance business with additional collateralised capacity. Silverton will be capitalised at $65 million. Aspen Re has provided $15 of funding and secured the remainder from third party investors.

Silverton Re will enter into a quota share retrocession agreement with Aspen under which it will reinsure a proportionate share of Aspen’s property catastrophe excess of loss portfolio.

Brian Tobben, Managing Director of Aspen Capital Markets, said: “this is an important step as we develop our capabilities in the alternative reinsurance market. Our objective is to partner with the capital markets so that we are able to provide investors with access to diversified natural catastrophe risk backed by the distribution, underwriting, analysis and research expertise of Aspen Re.”

James Few, Chief Executive Officer of Aspen Re, added: “when we established Aspen Capital Markets earlier this year, our focus was to develop alternative reinsurance structures to leverage our existing underwriting franchise, increase our operational flexibility in the capital markets and develop strong partnerships with new investors. Establishing Silverton Re is the starting point for this strategy and we are excited by the partnerships we are building.”