Aspen Reinsurance said yesterday it formed a new division, Aspen Capital Markets, to expand its participation in the alternative reinsurance market.

Brian Tobben was appointed managing director of the newly created unit, the company said.

Mr Tobben joined Aspen this month, having previously been with PartnerRe. He will be based in New York and report to James Few, CEO of Aspen Re.

Mr Few said: “Our decision to establish a capital markets division recognises developments in the reinsurance market over recent years as the influence of the capital markets on the catastrophe segment has steadily increased.

“The focus of the new unit will be to develop alternative reinsurance structures to leverage our existing underwriting franchise, increase our operational flexibility in the capital markets and provide investors direct access to our underwriting expertise. This initiative builds on our successful partnership with Cartesian Capital Group at Iris Re, an investment manager focused on investments in natural catastrophe risk.

“I am delighted that Brian has joined us to lead this new venture. He has a wealth of experience and I look forward to working with him as we develop our proposition in the evolving convergence market.”

Mr Tobben added: “Aspen Re is a highly respected reinsurer with a clear vision to diversify further into the capital markets. I am excited to be joining Aspen Re as it looks to build its capabilities in this area.”

Before joining Aspen Re, Brian Tobben was at PartnerRe for almost 10 years, most recently as head of Insurance Linked Securities where he managed a portfolio of catastrophe ILS, life ILS, weather and commodity investments.