Aspen Reinsurance, the reinsurance segment of Aspen Insurance Holdings, has announced that its Aspen Capital Markets division has renewed Silverton Re for 2017.
Silverton Re is a Bermuda-domiciled special purpose insurer and was established in December 2013 to provide additional collateralised capacity to support Aspen Re’s global reinsurance business.
Silverton Re was renewed in December 2016 with $130 million of capital raised to write a quota share of Aspen Re’s property catastrophe portfolio for 2017, which compares with the $125 million of capital raised in December 2015. Aspen is investing $25 million with the additional funding secured from third-party investors. Aon Securities acted as the placement agent. The capital is being raised through the issuance of Series 2017-1 Participating Notes which will mature on September 16, 2019.
Silverton Re will enter into a quota share retrocession agreement with Aspen Bermuda and Aspen Insurance UK under which Silverton Re will reinsure a proportionate share of Aspen Re’s globally diversified property catastrophe excess of loss portfolio.
Thomas Lillelund, CEO of Aspen Re, said: “When we established Aspen Capital Markets over three years ago, our objective was to develop alternative reinsurance structures to leverage our existing underwriting franchise, increase our operational flexibility in the capital markets and provide investors with direct access to our underwriting expertise.
“Silverton Re is an integral part of this strategy and gives investors access to diversified natural catastrophe risk backed by the distribution, underwriting, analytical and research expertise of Aspen Re. We are delighted with the progress that Brian Tobben and the Aspen Capital Markets team have made to date as we continue to develop strong partnerships with new investors.”
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