Aspen renews Silverton Re with more capital
Aspen Re has renewed its special purpose insurer Silverton Re for 2016 with increased capital.
Aspen Re is the reinsurance segment of Bermuda-based Aspen Insurance Holdings Ltd and its Aspen Capital Markets division set up Silverton two years ago with $65 million of capital.
In December 2014, it was renewed with $85 million and today the company announced it had renewed it again with $125 million.
Silverton provides additional collateralised capacity to support Aspen Re's global reinsurance business.
Aspen is investing $25 million with the additional funding secured from third-party investors. Aon Securities acted as the placement agent.
The capital is being raised through the issuance of notes that will mature on September 17, 2018.
Silverton will enter into a quota share retrocession agreement with Aspen Bermuda Ltd and Aspen Insurance UK Ltd under which Silverton will reinsure a proportionate share of Aspen Re's globally diversified property catastrophe excess of loss portfolio.
Stephen Postlewhite, chief executive officer of Aspen Re, said: “We are very pleased with the partnerships we are building through Silverton Re. Our aim has been to leverage the expertise within Aspen Re, in underwriting, research, distribution and analysis, and provide investors with access to diversified natural catastrophe risk. We remain confident that the strong relationships we have built will continue to develop as we make further progress in our strategy to increase our operational flexibility in the capital markets.”