New investment has boosted the assets in Hiscox’s Bermuda-based Kiskadee insurance-linked strategies funds to more than $400 million.

And Hiscox said investors have committed to inject more capital by the time reinsurance renewals take place next summer.

The two open-ended funds — Kiskadee Diversified Fund Ltd and Kiskadee Select Fund Ltd — are based in Bermuda. Their connection with Hiscox, the insurer said in a statement, offers “investors greater capital efficiency and market access than traditional direct collateralised ILS funds”.

Fellow Bermuda reinsurer Third Point Reinsurance Ltd is one of those to express interest in Kiskadee. In announcing in December 2014 that it would wind down its role in its catastrophe fund, Third Point Re said it would earmark funds to Kiskadee.

“Our Kiskadee funds combine superior risk selection with diversified market access provided by the Hiscox Group,” Jeremy Pinchin, chief executive officer of Hiscox Re, said in a statement. “We believe this is a truly distinctive offering and so are pleased at the enthusiastic response from new and existing investors.”

Kiskadee Investment Managers, a wholly owned subsidiary of Hiscox, provides tailored investment offerings as well as funds aimed at single investors.

Third-party capital, in the form of insurance-linked securities such as catastrophe bonds, as well as collateralised reinsurance, has claimed a growing market share and applied downward pressure to reinsurance rates.

Hiscox is one of the reinsurers to embrace the alternative capital rather than view it as a threat, by setting up its own ILS management operation.