PXRE has announced that it has entered into a $250m deal with Cayman Island reinsurer Altlantic and Western RE II.
PXRE has announced that it has entered into a $250m deal with Cayman Island reinsurer Atlantic and Western Re II.
The deal is designed to provide PXRE coverage for second event losses arising from hurricanes in the Eastern and Gulf coasts of the US, windstorms in northern Europe and earthquakes in California.
Jeffrey L Radke, president and chief executive of PXRE, said: “With the completion of this transaction, we are further supplementing our risk management programme to provide additional protection against multiple significant catastrophe losses in a single year.”
He added: “The $250m of new risk capital provided by this collateralised transaction, when combined with our existing capital and prior catastrophe bond transaction, provides us with significant additional resources to meet our obligations to our clients.”
Radke continued, “The unprecedented frequency of hurricanes over the last two years and the recent changes to rating agency capital adequacy models further emphasise the importance of a capital base that can absorb losses from more than one large catastrophe.”
PXRE said it had raised more than $1bn of additional risk capital in the fourth quarter of 2005 to support its underwriting and allow it to take advantage of the current favourable underwriting environment in core lines of business.
