Subsidiaries of Bermuda-based Montpelier Re Holdings have partnered with a United States government agency to form an insurance facility to underwrite stand-alone terrorism insurance products. Montpelier Agency and Montpelier Reinsurance Ltd., a premier provider of global property and casualty reinsurance and insurance products, have partnered with Overseas Private Investment Corporation (OPIC). It was founded in 1971 to support economic development by promoting US private investment in developing countries and transition economies. One of its principal objectives is helping US investors manage business risk by issuing political risk insurance. The partners say that the new facility will offer cost effective stand alone terrorism coverage to those businesses whose main concern is related to terrorism. The limit is up to $250 million per project. Montpelier Agency Ltd. will manage the facility on behalf of OPIC, providing underwriting and related services. Russell Fletcher, chief underwriting officer of Montpelier Reinsurance Ltd., said: ?Terrorism insurance and reinsurance have been a focus of Montpelier Re since our creation in the aftermath of 9/11, and our recent appointment of Jon Hughes to direct our terrorism practice and manage the new facility underscores our commitment to providing excellent products and high quality services to OPIC?s insureds.? OPIC?s terrorism insurance will cover violent acts with the primary intent of achieving a political objective, undertaken by individuals or groups that do not constitute a national or international armed force. Coverage will also include protection against threats posed by weapons of mass destruction. OPIC will offer protection of up to ten years and in countries for which private sector insurance is not readily available. Its vice president for insurance Michael Lempres said that the new facility will broaden the distribution of the company?s terrorism insurance products.