Aspen Insurance Holdings Ltd has announced that it will renew its Bermuda special purpose insurer Silverton Re for 2017 with $130 million in capital.

The Bermudian-based insurer and reinsurer set up Silverton in three years ago through its Aspen Caital Markets division to beef up capacity to support Aspen global reinsurance business.

Silverton was renewed this month with $130 million in capital, compared to $125 million last year.

Aspen is investing $25 million with the additional funding coming from third-party investors. Aon Securities Inc acted as the placement agent. The capital is being raised through the issuance of Series 2017-1 Participating Notes which will mature on September 16, 2019.

Silverton Re will enter into a quota share retrocession agreement with Aspen Bermuda Ltd and Aspen Insurance UK Ltd under which Silverton Re will reinsure a proportionate share of Aspen Re’s globally diversified property catastrophe excess of loss portfolio.

Thomas Lillelund, Aspen Re’s chief executive officer, said: “When we established Aspen Capital Markets over three years ago, our objective was to develop alternative reinsurance structures to leverage our existing underwriting franchise, increase our operational flexibility in the capital markets and provide investors with direct access to our underwriting expertise.

“Silverton Re is an integral part of this strategy and gives investors access to diversified natural catastrophe risk backed by the distribution, underwriting, analytical and research expertise of Aspen Re. We are delighted with the progress that Brian Tobben and the Aspen Capital Markets team have made to date as we continue to develop strong partnerships with new investors.”