Validus Holdings, Ltd. announced Wednesday that it has joined with other investors in capitalizing AlphaCat 2014, Ltd. and has fully deployed its capital.
AlphaCat 2014 is a special purpose vehicle formed for the purpose of writing collateralized reinsurance and retrocessional contracts for the 1/1/2014 renewal season.
AlphaCat 2014 has been funded with $160 million of equity capital, with third-party investors contributing $138 million or 86.25 percent of the funding and the balance provided by Validus.
AlphaCat Managers, Ltd., one of three primary segments of Validus Holdings, will underwrite business for AlphaCat 2014, for which it will be paid a commission for originating the business and a profit commission based on the vehicle’s underwriting results.
In addition to the AlphaCat Managers operation, Validus Holdings, Ltd. is also a provider of reinsurance and insurance operating through Validus Reinsurance, Ltd. and Talbot Holdings Ltd.
Source: Validus Holdings