Aspen Re renews and grows ‘integral’ Silverton Re sidecar

Bermuda-based Aspen Re, the reinsurance unit of Aspen Insurance Holdings, has renewed its specialist collateralized reinsurance sidecar Silverton Re for 2017 raising $5 million more than it raised for 2016.

The facility, which provides additional collateralized capacity to support Aspen Re’s global reinsurance business, raised $130 million. Some $25 million of the funding is provided by Aspen while the additional funding is secured from third-party investors.

Silverton Re is managed by Aspen Capital Markets and is a Bermuda-domiciled special purpose insurer established in December 2013. The $130 million raised will be used to write a quota share of Aspen Re’s property-catastrophe portfolio for 2017. Aon Securities acted as the placement agent.

Silverton Re will enter into a quota share retrocession agreement with Aspen Bermuda and Aspen Insurance UK under which Silverton Re will reinsure a proportionate share of Aspen Re’s property-catastrophe excess-of-loss portfolio.

Thomas Lillelund, chief executive officer of Aspen Re, said: “When we established Aspen Capital Markets over three years ago, our objective was to develop alternative reinsurance structures to leverage our existing underwriting franchise, increase our operational flexibility in the capital markets and provide investors with direct access to our underwriting expertise.

“Silverton Re is an integral part of this strategy and gives investors access to diversified natural catastrophe risk backed by the distribution, underwriting, analytical and research expertise of Aspen Re.

“We are delighted with the progress that Brian Tobben and the Aspen Capital Markets team have made to date as we continue to develop strong partnerships with new investors.”