Aspen Reinsurance Establishes Silverton Re
Aspen Reinsurance, the reinsurance segment of Aspen Insurance Holdings Limited, announces that its Aspen Capital Markets division has established Silverton Re.
Silverton Re is a Bermuda domiciled special purpose insurer formed to provide additional collateralized capacity to support Aspen Re’s global reinsurance business. Silverton Re will be capitalized initially at US$65 million with US$15 million of funding provided by Aspen Re and additional funding secured from third party investors. Aon Benfield Securities, Inc. acted as the placement agent.
Brian Tobben, Managing Director of Aspen Capital Markets, said, “This is an important step as we develop our capabilities in the alternative reinsurance market. Our objective is to partner with the capital markets so that we are able to provide investors with access to diversified natural catastrophe risk backed by the distribution, underwriting, analysis and research expertise of Aspen Re.”
Silverton Re will enter into a quota share retrocession agreement with Aspen under which it will reinsure a proportionate share of Aspen’s globally diversified property catastrophe excess of loss portfolio.
James Few, Chief Executive Officer of Aspen Re, added, “When we established Aspen Capital Markets earlier this year, our focus was to develop alternative reinsurance structures to leverage our existing underwriting franchise, increase our operational flexibility in the capital markets and develop strong partnerships with new investors. Establishing Silverton Re is the starting point for this strategy and we are excited by the partnerships we are building.”
