Bermuda-based Validus Holdings, Ltd. announced the capitalization of PαCRe, Ltd., a new Class 4 reinsurer. “PαCRe has been formed to combine the attractive returns available from underwriting top layer reinsurance programs with a long term approach to asset management,” said the announcement.
It also explained that “PαCRe is funded with $500 million of contributed capital and is rated “A-” (Excellent) by A.M. Best Co. Validus Underwriting Services, Ltd. will underwrite business for PαCRe for which it will be paid a profit commission based on the company’s underwriting results. ”
The new venture will commence deploying capacity for the June 1, 2012 renewal season. Validus said it has invested $50.0 million, or 10 percent, in PαCRe’s common equity.
“PαCRe’s investment portfolio will be managed under a long term investment management agreement by Paulson & Co. Inc.” which has “approximately $24 billion in assets under management and has offices in New York, London and Hong Kong,” the bulletin concluded.
Source: Validus Holdings, Ltd.
Was this article valuable?
Here are more articles you may enjoy.
Former Insurance Agent Sentenced to Jail for Fraud, Again 
Company at Center of Cyclospora Outbreak Complained to White House, Source Says 
eBay Settles Couple’s Harassment, Stalking Claims for $55.7 Million 
Mapfre to Acquire Safety Insurance for $1.54 Billion in Cash Deal 
