UK-based specialty insurer and reinsurer Brit has launched a new Bermuda-domiciled collateralised reinsurance platform, Sussex Capital.

The new platform, which is established in time for January reinsurance renewals season, will do business via a Bermudian special purpose insurer, Sussex Re.

It will write direct collateralised reinsurance and provide collateralised reinsurance to reinsurance portfolio of Brit.

Brit is targeting a 1 January 2018 launch for the platform with $100m of initial capacity.

Brit CFO Mark Allan said: “Sussex Capital is the next step in Brit’s strategy to build long term relationships with the capital markets.

“It will complement Versutus, our existing Bermuda-domiciled special purpose insurer, further strengthening Brit’s reinsurance capability and access to a diversified source of capital to support property catastrophe risk.”

Brit has appointed Jay Nichols to join the boards of Sussex Capital. He will also serve as non-executive director of Brit Re and become chairman of the Brit Re’s audit committee.

Most recently, Nichols was CEO of the reinsurance operations of Axis Capital. He previously spent 15 years at RenaissanceRe.

Brit underwrites across a range of commercial insurance with a  focus on property, casualty and energy business.

Earlier this month, Brit said that it is relocating its Gibraltar based reinsurer, Brit Insurance (Gibraltar) PCC, to Bermuda.

After the planned completion of the process by the end of the year, Brit Insurance (Gibraltar) will become Brit Reinsurance (Bermuda) (Brit Re).