Norton Re II Insurance Limited has been established as a Class 3 Bermuda reinsurer to provide natural perils catastrophe retrocession protection.

A license has been received from the Bermuda Monetary Authority.

With initial equity capital of $118.2 million, Norton Re II will appoint Brit Insurance to provide underwriting expertise on the Island. Brit Insurance is the lead investor with $20 million.

The underwriting team already established in Bermuda is headed by David Jordan, a long-standing global lead retrocession underwriter and Andrew Cunningham, his deputy retrocession underwriter and a qualified actuary.

Norton Re II is to provide a wider blend of "one shot" Ultimate Net Loss, excess of loss retrocession cover than was offered by its predecessor, Norton Re, according to a statement.

Norton Re II will not be seeking a stand-alone security rating but instead will be offering a fully cash collateralised product, ensuring its clients enjoy superior security.

Jonathan Turner, CEO of Brit Reinsurance and a member of the Board of Norton Re II, said: "Through the broker market we are providing capacity for reinsurance entities to purchase meaningful risk transfer solutions. The team will be contacting the relevant broking houses in the very near future to discuss the product offering, capacities available and the strategy for the coming January renewals."

HSBC acted as the sole advisor, structurer, and placement agent on the transaction.