Validus Holdings Ltd. Capitalizes AlphaCat 2014

January 9, 2014

Bermuda-based Validus Holdings Ltd. has joined with other investors in capitalizing AlphaCat 2014 Ltd, which 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% of the funding and the balance provided by Validus.

Ed Noonan, Chairman and Chief Executive Officer of Validus, commented: “AlphaCat 2014 reflects the continued importance of Validus’ franchise in the global property catastrophe reinsurance market.

“We are pleased with the significant level of investor support which reflects on the scale of Validus’ operations, the skill of our underwriting team and the AlphaCat infrastructure we have developed to manage third party capital.”

AlphaCat Managers, Ltd. 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.

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