New Point Re III offers $100m limit. Aon Benfield placement agent.
Harbor Point's New Point Re III is offering $100m aggregate limits cover for collateralised retro cover.
John R. Berger, CEO of Harbor Point, says: "New Point will continue to provide capacity to the underserved retro marketplace. This is the fourth year of operation for New Point, which allows us to leverage our underwriting expertise while meeting client-specific needs and providing capital market investors with uncorrelated returns."
Capacity for treaty retrocession increased modestly at the Jan 1 2010 renewals, as there were new entrants to the market, including CERES RE, a Lloyd's retro underwriter funded principally by Munich Re. Retro capacity was badly affected at last year's renewals by the withdrawal in late 2008 of CIG Re (owned by hedge fund Citadel) and Lehman Re.
"Most reinsurance companies in Bermuda and the US and many in London and continental Europe will write some retro," says Greg Richardson, Chief Underwriting Officer, Harbor Point. "However, their appetite is limited because of the capital requirements associated with this line of business. There are also a few dedicated funds that focus on retro, generally on a collateralised basis, and provide significant capacity to the market."
Aon Benfield Securities acted as placement agent for New Point. Paul Schultz, President of Aon Capital Markets, says: "New Point addresses an important need within the reinsurance market. The underwriting discipline and reputation of the Harbor Point team are instrumental in attracting interest in this venture."
The New Point capacity will be used for writing collateralised property catastrophe retrocessional contracts, including first and second event covers, regionally and worldwide, as well as Industry Loss Warranties (ILWs). Harbor Point Agency Limited provides all underwriting and management services to New Point.