Validus launches Bermuda reinsurer to write top-layer catastrophe coverage

PEMBROKE, Bermuda—Validus Holdings Ltd. has launched a new Bermuda reinsurer capitalized with $500 million.

The reinsurer, PaCRe Ltd., will underwrite top-layer property catastrophe reinsurance, a Validus spokesman said.

In a statement announcing capitalization of the reinsurer, Valdius said the Bermuda entity was formed to “combine the attractive returns available” from underwriting such reinsurance with a long-term approach to asset management.

PaCRe will begin deploying capacity for the June 1 renewal season, Validus said in the statement.

Validus has invested $50 million in PaCRe’s equity. The rest will come from outside parties, the spokesman said.

New York-based Paulson & Co. will manage the reinsurer’s investment portfolio.