A company that was part of RenaissanceRe’s nearly $3 billion acquisition of assets from American International Group is to go into run-off, the Bermudian-based acquirer has revealed.

Under the terms of the deal, which closed in November, RenRe acquired AIG’s treaty reinsurance business, which included Validus Reinsurance Ltd and its consolidated subsidiaries, AlphaCat Managers Ltd and its managed funds, and all renewal rights to the Assumed Reinsurance Treaty Unit of Talbot.

However, in an annual filing with the US Securities and Exchange Commission for the year just ended, RenRe provided summaries of its managed joint ventures and managed funds.

Of AlphaCat, the company said: “In connection with the Validus Acquisition, we acquired AlphaCat Managers, which manages third-party capital in various forms, including through closed-end and open-end Bermuda mutual funds and one managed account, collectively the ‘AlphaCat Funds’, which currently generate fee income.

“The AlphaCat Funds are primarily funded by third-party capital investors and controlled by external boards unaffiliated with us. The AlphaCat Funds are invested in various risk-linked instruments through variable funding notes issued by AlphaCat Re, AlphaCat Master Fund and OmegaCat Re, which give investors access to a range of property catastrophe risks.

“Prior to the Validus Acquisition, substantially all of the AlphaCat Funds had received full redemption requests from their investors and capital was being released accordingly, subject to certain constraints.

“We expect to run off this business over a period of time.”