Validus Renews $70M AlphaCat for Florida Risks
Validus Holdings re-upped its longstanding collateralized sidecar AlphaCat program with a new $70 million vehicle for the 2012 hurricane season.
The Bermuda-based insurer said Friday that the firm “joined with investors” in capitalizing AlphaCat Re 2012, Ltd. The special purpose vehicle — domiciled in Bermuda — will be “focused on collateralized reinsurance with a particular focus on windstorm risks for Florida domiciled insurance companies,” a company statement said.
Validus Underwriting Services, Ltd. will underwrite AlphaCat 2012, the statement explained, adding it will be “paid a commission for originating the business and a profit commission based on underwriting results.”
“AlphaCat 2012 reflects the continued expansion of Validus’ franchise in the important property catastrophe reinsurance market,” said Validus CEO Ed Noonan in a prepared statement. “We are very pleased to be able to provide additional capacity to our customers, and with the level of support for AlphaCat 2012 provided by investors and intermediaries.”
During the 2011 hurricane season Validus-backed AlphaCat Re 2011 with $180 million of capital.
AlphaCat joins Renaissance Re, which renewed its longstanding sidecar structure with the formation of Timicuan Reinsurance III Ltd., the company announced Friday.
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