Montpelier Re has agreed to acquire the renewal rights of fellow Bermudian (re)insurer Torus's property catasrophe reinsurance business.

As part of the deal, Torus will provide sidecar capacity to Montpelier from 1 January 2012.

"With the continued expansion opportunities we see in our insurance operations, along with our modest ambitions for niche reinsurance, we have determined it is more effective for our catastrophe reinsurance business to be integrated into the larger Montpelier portfolio, and for us to continue our catastrophe reinsurance participation through a sidecar arrangement," said Torus chief executive Clive Tobin in a statement. "We will continue to write casualty and specialty reinsurance through our Bermuda team under the experienced leadership of David Whiting.”

Montpelier chief executive Christopher Harris added: “The acquisition of these renewal rights and accompanying sidecar capacity further enhances our position in one of our core markets at a time when conditions are visibly improving.”