A Bermuda reinsurance firm has set up a new arm with backing of $65 million.

Aspen Re has created Silverton Re, run by Aspen Capital Markets, to tap into new sources of finance.

Brian Tobben, managing director of Aspen Capital Markets, said: “This is an important step as we develop our capabilities in the alternative reinsurance market.

“Our objective is to partner with the capital markets so that we are able to provide investors with access to diversified natural catastrophe risk backed by the distribution, underwriting, analysis and research expertise of Aspen Re.”

The new Bermuda-domiciled firm will be initially capitalised at $65 million, with $15 million from Aspen Re and additional funding raised from third party investors.

Silverton Re will reinsure a proportionate share of Aspen’s global property catastrophe excess of loss portfolio.

Aspen Re CEO James Few said: “When we established Aspen Capital Markets earlier this year, our focus was to develop alternative reinsurance structures to leverage our existing underwriting franchise, increase our operational flexibility in the capital markets and develop strong partnerships with new investors.

“Establishing Silverton Re is the starting point for this strategy and we are excited by the partnerships we are building.”

Aspen Re is part of Aspen Insurance Holdings, which had gross written premiums of $1.2 billion in 2012.

The firm offers a broad range of speciality reinsurance cover and has offices in the US, the UK, Switzerland, France, Germany and Singapore, as well as Bermuda.