US insurer Liberty Mutual has utilised its Bermudian special purpose insurer Limestone Re Ltd to raise $240 million of new reinsurance capacity.

The company said in a press release that the transaction was comprised of $135 million of Bermuda Stock Exchange listed 2019-2 notes issued by Limestone Re and the remainder of the capacity provided via private placements.

James Slaughter, executive vice-president and chief underwriting officer of Liberty Mutual’s Global Risk Solutions strategic business unit, said: “This result reaffirms the quality of risk which insurance-linked securities investors can access via Limestone Re. “Third-party capital will continue to be a growing presence in the re/insurance market, and the Limestone Re platform remains an integral component of Liberty Mutual’s strategy for accessing this capital.”

Arno Gartzke, vice-president and director of ILS, Liberty Mutual, the transaction successfully replaced the expiring Limestone Re 2018-1 placement and had an overall lower target size due to a revised portfolio composition.

“The continued support from our key capital markets partners enabled a successful placement despite a challenging ILS market, and provides a robust foundation for the Limestone Re platform going forward,” Mr Gartzke said.

“The strong performance of previous Limestone Re placements relative to the broader ILS market through 2017 and 2018 is reflected in this solid base of support.”

Liberty Mutual has underwriting operations in Bermuda, having acquired Ironshore two years ago.