Bermuda-based (re)insurance validus has launched a new sidecar reinsurer called AlphaCat Re 2011.
Validus has teamed up with other investors to capitalise the new vehicle with $180m.
AlphaCat Re will provide fully-collateralised reinsurance and retrocession on an ultimate net loss, index-based and premium protection basis. It will start writing from today up until 31 December 2012, but this period may be extended under certain circumstances.
Validus Underwriting Services will underwrite on behalf of AlphaCat Re, for which it will be paid an originating commission plus a profit commission based on the results for the 2011 and 2012 underwrting years.
Validus has invested $50m in AlphaCat Re, with the rest provided by othr shareholders. Funds managed by private equity firm Serengeti Asset Management were the lead investor in the new sidecar.