Validus Holdings, Ltd. (NYSE: VR) ("Validus" or the "Company") announced today that its investment advisory subsidiary, AlphaCat Managers, Ltd., has raised $404.4 million of third party capital for investment in collateralized reinsurance and Insurance Linked Securities (“ILS”).
AlphaCat 2013, Ltd. (“AlphaCat 2013”) is a special purpose vehicle formed to invest in collateralized property catastrophe reinsurance and retrocession on a worldwide basis. AlphaCat 2013 is capitalized at $230.0 million, with outside investors contributing $185.0 million or 80.4% of the funding and the balance being provided by Validus.
Validus also announced that $219.4 million of third party subscriptions were received in its ILS funds. The AlphaCat ILS funds invest in instruments with returns linked to property catastrophe reinsurance, retrocession and ILS contracts.
Ed Noonan, Chairman and Chief Executive Officer of Validus commented: “AlphaCat 2013 and the third party investment in the AlphaCat ILS funds reflect the continued importance of Validus’ franchise in the global property catastrophe reinsurance market. We are pleased with the significant level of investor support which reflects on the scale of Validus’ operations, the skill of our underwriting team and the AlphaCat infrastructure we have developed to manage third party capital.”About Validus Holdings, Ltd. and AlphaCat Validus Holdings, Ltd. is a provider of reinsurance and insurance, conducting its operations worldwide through two wholly-owned subsidiaries, Validus Reinsurance, Ltd. (“Validus Re”) and Talbot Holdings Ltd. (“Talbot”). Validus Re is a Bermuda based reinsurer focused on short-tail lines of reinsurance. Talbot is the Bermuda parent of the specialty insurance group primarily operating within the Lloyd’s insurance market through Syndicate 1183. The Validus owned AlphaCat investment advisory group was formed in 2008 and manages property catastrophe-linked sidecars, ILS funds and the Bermuda Class 4 reinsurer, PaCRe, Ltd. Cautionary Note Regarding Forward-Looking Statements This press release may include forward-looking statements, both with respect to us and our industry, that reflect our current views with respect to future events and financial performance. Statements that include the words “expect,” “intend,” “plan,” “believe,” “project,” “anticipate,” “will,” “may,” “could” and similar statements of a future or forward-looking nature identify forward-looking statements. All forward-looking statements address matters that involve risks and uncertainties. Accordingly, there are or will be important factors that could cause actual results to differ materially from those indicated in such statements and, therefore, you should not place undue reliance on any such statements. We believe that these factors include, but are not limited to, the following: 1) unpredictability and severity of catastrophic events; 2) rating agency actions; 3) adequacy of Validus’ risk management and loss limitation methods; 4) cyclicality of demand and pricing in the insurance and reinsurance markets; 5) statutory or regulatory developments including tax policy, reinsurance and other regulatory matters; 6) Validus’ ability to implement its business strategy during “soft” as well as “hard” markets; 7) adequacy of Validus’ loss reserves; 8) continued availability of capital and financing; 9) retention of key personnel; 10) competition; 11) potential loss of business from one or more major insurance or reinsurance brokers; 12) Validus’ ability to implement, successfully and on a timely basis, complex infrastructure, distribution capabilities, systems, procedures and internal controls, and to develop accurate actuarial data to support the business and regulatory and reporting requirements; 13) general economic and market conditions (including inflation, volatility in the credit and capital markets, interest rates and foreign currency exchange rates); 14) the integration of businesses Validus may acquire or new business ventures Validus may start; 15) the effect on Validus’ investment portfolios of changing financial market conditions including inflation, interest rates, liquidity and other factors; 16) acts of terrorism or outbreak of war; and 17) availability of reinsurance and retrocessional coverage, as well as management’s response to any of the aforementioned factors.
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