New vehicle capitalised by Alterra and Stone Point

Bermuda-based (re)insurer Alterra has launched New Point IV, a sidecar reinsurer capitalised at up to $200m.

The vehicle is designed to provide additional capacity to the collateralised property-catastrophe reinsurance marketplace and has been set up in response to the recent string of natural disasters.

New Point IV will be capitalised by Alterra and private equity firm Stone Point Capital. Each has committed up to $100m to capitalise the sidecar.

"Given the recent series of global catastrophic events, which have had the effect of reducing the capital supporting the international property catastrophe reinsurance market, we believe that this is a very timely addition of capacity," said Alterra chief executive Marty Becker in a statement.

Sidecars act as retrocessionaires to the sponsoring firm, effectively allowing the sponsor, in this case Alterra, to write more business.

New Point IV is the latest in a sidecar series established by reinsurer Harbor Point, which merged with fellow Bermudan firm Max Capital to form Alterra in May last year.

John Berger, Alterra's renisurance chief and former Harbor Point CEO, said: "Alterra has a history of successfully sponsoring sidecar vehicles and, with the creation of New Point IV, we believe we are well positioned to serve our clients' needs as they seek property catastrophe reinsurance."