• Investment Year:Various
  • Status:Past
  • Stage:
  • HQ:Bermuda

New Point Sidecar Vehicles

New Point IV Limited, New Point V Limited, New Point VI Limited and New Point VII Limited are sidecar vehicles sponsored by Trident and Markel Corporation (formerly Alterra Capital Holdings Limited, a Trident portfolio company), to address the demand for property catastrophe reinsurance capacity.

The New Point entities are market-facing vehicles that underwrite property catastrophe reinsurance on a global basis and in a fully collateralized format.

INDUSTRY KNOWLEDGE & NETWORK

The New Point retrocessional reinsurance opportunity was derived from Stone Point’s long-standing P&C Insurance elephant and extensive relationships in the reinsurance space. Stone Point acted as lead investor of the vehicles, helped to design their structures, provided ongoing advisory services, served on their Boards, and assisted with introductions for third-party capital.

BUSINESS & PRODUCT DEVELOPMENT

Stone Point helped to design the structure for the New Point vehicles including the one-year duration for each investment. The unique structure allowed New Point to raise capital from some investors that had not directly invested in reinsurance risk previously.

CAPITAL RAISING & STRUCTURING

Stone Point introduced New Point to all of the third parties that ultimately invested in the New Point vehicles. Many of these investors leveraged Stone Point’s long-standing P&C insurance expertise to learn about the asset class. The Stone Point introductions led to twelve institutional investors committing $266 million to the New Point vehicles.

OPERATIONAL ASSISTANCE & GOVERNANCE

Stone Point helped create the original business plan and key terms for governing the New Point vehicles.

EXIT STRATEGY

Stone Point advised on the structure of each New Point vehicle, which dictated their liquidation terms upon the annulment of each reinsurance contract.

We are pleased to continue our support of the collateralized retrocessional market with New Point V and are glad to be partnering again with industry experts like Stone Point. With New Point V, we believe we remain well positioned to serve our clients’ needs as they seek property catastrophe reinsurance.
Marty Becker, Former CEO of Alterra