Business Development Minister Wayne Furbert has welcomed the formation of PaCRe, formed by Bermuda reinsurer Validus Holdings in conjunction with American hedge fund manager John Paulson.As reported by The Royal Gazette nearly two weeks ago, PaCRe will be funded by $500 million of contributed capital, which the new company will start to deploy for the June 1, 2012 renewal season. Mr Paulson’s New York-based company, Paulson & Co, will manage PaCRe’s assets, while Validus will carry out the underwriting.Mr Furbert added that PaCRe was one of eight Class 4 insurers to have incorporated on the Island in the past five years, despite the economic challenges during that time. The formations represented an aggregate of more than $8 billion in fresh capital for the Bermuda insurance industry, according to a Government statement released yesterday.“The Government of Bermuda is pleased to have learned of the announcement by Validus Holdings, Ltd of the capitalisation of a new Bermuda Class 4 reinsurer, PaCRe. This is yet another example of the confidence that the insurance industry has shown in Bermuda. Their investment continues to make Bermuda the jurisdiction of choice.“The Government is determined to ensure that Bermuda is welcoming to international business, and that Bermuda is open to and open for business.”PaCRe’s formation represented a “strong vote of confidence in Bermuda as a leading financial jurisdiction”, Mr Furbert added.Mr Furbert is one of two Cabinet Ministers, along with Premier Paula Cox, to be registered for the Risk and Insurance Management Society’s (RIMS) annual conference, which starts today in Philadelphia.Ed Noonan, chairman and CEO of Validus Holdings, said: “Bermuda’s combination of strong regulatory oversight, receptivity to new companies and pre-eminence as the knowledge centre for global catastrophe risk has been critical to our success as a company and our ability to continue to grow and attract new investment capital to our business.“Validus is proud of its excellent Bermudian employee base, and continues to see a bright future for international business on the Island.”