Bermuda based re/insurance group Alterra Capital Holdings has today formally announced the formation of their awaited New Point V sidecar reinsurance vehicle. We’ve known that New Point V was on the horizon since as far back as March when an SEC filing disclosed that Alterra were preparing another iteration of their New Point series of collateralized reinsurance sidecars.
Alterra Capital have again teamed up with Stone Point Capital LLC through its private equity fund, Trident V, L.P. and its affiliates, to launch New Point V. With the launch of the New Point V sidecar Alterra are hoping to provide additional capacity to the property catastrophe collateralized reinsurance market and capitalise on the current rate environment.
Alterra says that New Point V currently has capital commitments from its sponsors and additional investors of approximately $210 million. We’d imagine that they will have deployed as much of that as they could at the 1st June renewals. Around the same time last year they raised $200m for their New Point IV sidecar vehicle.
Marty Becker, President and CEO of Alterra said; “We are pleased to continue our support of the collateralized retrocessional market with New Point V and are glad to be partnering again with industry experts like Stone Point. With New Point V, we believe we remain well positioned to serve our clients’ needs as they seek property catastrophe reinsurance.”
New Point V is the latest in a series of sidecar vehicles to launch around the mid-year renewals, Renaissance Re launched Timicuan Re III, Validus launched AlphaCat Re 2012 and Lancashire renewed Accordion. These are all evidence of the growing role that investors increasingly have in providing reinsurance capacity for peak risks.