Back in April Alterra Capital, the global insurance and reinsurance group, announced that they were forming a new collateralized reinsurance sidecar vehicle aiming to create additional capacity for the property catastrophe retrocessional market at a time when they could profit from market conditions. Now the capital raising is complete and New Point IV has closed with over $200m of investment.
Originally, Alterra and Stone Point Capital LLC has committed to put up to $100m of capital each into the new sidecar but at the close of the formation they each contributed $75m while the remainder, more than $50m, was found from six other external private investors.
It’s not surprising that they’ve managed to attract investors to their offering. Reinsurance and catastrophe linked investments are particularly attractive to many investors right now as they seek a source of good returns with minimal correlation to turbulent financial markets and sovereign investments.
Aon Benfield securities acted as adviser to the formation of the New Point IV sidecar.