Aspen Reinsurance's capital markets division has established a new special purpose insurer called Silverton Re to offer additional collateralized capacity to support Aspen Re's global reinsurance business.
Bermuda domiciled Silverton Re will start operations with an initial capital of $65m, out of which $15m will be contributed by Aspen Re, while the rest capital has been secured from third party investors.
According to the reinsurance firm, Aon Benfield Securities served as the placement agent.
Aspen Capital Markets managing director Brian Tobben said this is an important step as the company develops its 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," Tobben added.
In order to reinsure a proportionate share of Aspen’s globally diversified property catastrophe excess of loss portfolio, Silverton Re is planning to sign a quota share retrocession agreement with Aspen.
Aspen Re CEO James Few said that the company formed Aspen Capital Markets earlier this year, its aim was to develop alternative reinsurance structures to leverage its existing underwriting franchise, increase its operational flexibility in the capital markets and develop strong partnerships with new investors.
Aspen offers reinsurance and insurance coverage to customers globally leveraging its wholly-owned subsidiaries and offices in Bermuda, France, Germany, Ireland, Singapore, Switzerland, the UK and US.