Validus increases ILS and collateralised capacity

Validus is the latest Bermuda player to announce that it is increasing its ILS and collateralised capacity. The company indicated on Wednesday that its AlphaCat Managers investment advisory subsidiary had raised $404.4 million of third party capital to invest in the alternative reinsurance space.

Its sidecar, AlphaCat 2013 will provide reinsurance and retro property cat coverage on a worldwide basis, to the tune of $230 million, with outside investors contributing 80.4 percent of the funds. This offering is complemented by its AlphaCat ILS funds, which received $219.4 million of third party subscriptions to its ILS funds, which invest in instruments linked to property catastrophe reinsurance, retrocession and ILS contracts.

Addressing the move, Ed Noonan, chairman and CEO of Validus said: “AlphaCat 2013 and the third party investment in the AlphaCat ILS funds reflect 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.”