Globe Re will underwrite business for Florida catastrophe exposure
Benfield Group Limited has made a cash investment of US$20.5m into Globe Re, a new limited-life reinsurance vehicle that will participate in a portfolio of US property catastrophe risks sponsored by Hannover Re.
Benfield Advisory, Benfield’s specialist corporate finance and advisory business, is the joint structurer and placement agent for the vehicle which will underwrite business from 1 June inception. This is the third major sidecar vehicle providing significant capacity for US natural catastrophe risks created by Benfield Advisory.
Grahame Chilton, chief executive of Benfield said: “Benfield Advisory led the way in creating capacity for our customers’ Florida catastrophe exposures with Starbound I in 2006 and Starbound II in 2007. Once again, we have demonstrated the strength of our capabilities in the capital markets interface with the reinsurance sector. I am delighted that we have made an investment in this innovative vehicle.”