PHILADELPHIA (PRNewswire) — As part of its ongoing development in the areas of insurance and alternative asset management, NATIXIS has gone into partnership with Bermuda-domiciled financial services holding company White Mountains Insurance Group. The result is Pentelia Capital Management, a new asset management company based in Bermuda.

PCM's first fund, Pentelia Limited, with total capital commitments of approximately US$ 600 million.

Pentelia Limited is a highly innovative alternative investment fund designed to participate in a broad array of rapidly-growing insurance risk securitisation markets.

The fund will invest in a diversified portfolio of life and non-life insurance-linked assets including adverse mortality bonds, weather derivatives, terrorism insurance, life settlements, cat bonds and property catastrophe reinsurance.

The fund has created a new Bermuda reinsurance company, Pentelia Re, in order to be able to offer direct reinsurance coverage on a collateralised basis if desired.

The fund's stated investment strategy is to invest in a number of remote- probability insurance events and to deliver a consistent return with little to no correlation with financial markets.

PCM, based in Hamilton, Bermuda, specialises in the underwriting and management of insurance-linked assets and investments and has specific expertise in each of the asset classes mentioned above.

White Mountains Insurance Group is the parent of Bermuda-based global reinsurer White Mountains Re Group.

Pentelia Limited's business plan is complementary to White Mountains Re.