A new $75 million Bermuda-based special purpose reinsurer has been launched by re/insurer Brit to provide collateralised capacity support for Brit’s property treaty portfolio.
The sidecar, Versutus, has entered into a quota share agreement with Brit under which it will reinsure a share of Brit’s existing worldwide property catastrophe excess of loss portfolio.
It will initially be capitalised at $75 million with capital being committed by a number of investors, with the new vehicle on risk from January 1st 2015. GC Securities acted as placement agent for the Versutus launch.
Jon Sullivan, head of short tail reinsurance, said: “At Brit we have a well-established book of diversified worldwide excess of loss catastrophe reinsurance business which has a highly profitable 14 year track record.
“We are pleased to be able to develop new reinsurance relationships with capital market partners whilst providing them with access to Brit’s strong underwriting capabilities, diversified distribution reach via both our London and Bermudian platforms as well as all the benefits the group experiences as one of the largest of the Lloyd’s syndicates.”
Matthew Wilson, chief executive officer at Brit Global Specialty, added: “This is an important step for Brit as we look to broaden and enhance our capabilities within the capital markets arena and to maximise the efficiencies of our reinsurance programs for 2015. We are delighted to have secured funding for Versutus from a range of new partners whom we look forward to working with closely in the future.”
Brit, Bermuda, Reinsurance, Versutus, Jon Sullivan, Matthew Wilson