Bermuda based re/insurance group Alterra Capital Holdings has announced an increase in their total capital committed to their New Point V Limited fully collateralized reinsurance sidecar vehicle to $247m. New Point V was established by Alterra back in June with $210m of capital to create new opportunities for them, and new capacity for, in the property catastrophe collateralized reinsurance marketplace.
New Point V is a joint venture sidecar between Alterra and hedge fund manager Stone Point Capital LLC through its private equity fund, Trident V, L.P. and its affiliates. All of the additional capital commitments have come from third-party investors, according to the press release.
Marty Becker, President and Chief Executive Officer of Alterra said; “We are pleased to report an increase in the capital commitments to New Point V. This increase will allow us to expand our support of the collateralized retrocessional market. We continue to believe that we are well positioned to serve our clients’ needs as they seek property catastrophe reinsurance.”
We expect other sidecars will have increased their capital in recent weeks ready for the upcoming January reinurance renewals when they will attempt to put all of their capital to work underwriting property catastrophe business at the best premium rates they can achieve.