Brit Ltd has launched new collateralised reinsurance vehicle Sussex Capital on the island.

The move from the Lloyd’s of London insurer comes just a week after Brit announced that its captive insurer Brit Re will redomesticate to Bermuda from Gibraltar.

Brit, which is owned by Canadian-based Fairfax Financial Holdings, also said former RenaissanceRe and Axis Capital executive Jay Nichols had joined the boards of both Sussex Capital and Brit Re as a non-executive director.

Sussex, set up in time for January reinsurance renewals season, will do business through a Bermudian special purpose insurer Sussex Re.

In a statement Brit said it was targeting a January 1, 2018, launch with $100 million of initial capacity.

“Sussex Capital is the next step in Brit’s strategy to build long-term relationships with the capital markets,” Mark Allan, Brit’s chief financial officer, said.

“It will complement Versutus, our existing Bermudian-domiciled special purpose insurer, further strengthening Brit’s reinsurance capability and access to a diversified source of capital to support property catastrophe risk.”

Sussex will write third-party business on a fully collateralised basis and also assume risk from Brit’s syndicate at Lloyd’s.

Mark Cloutier, Brit’s executive chairman, said of the appointment of Mr Nichols: “The launch of Sussex Capital and establishment of Brit Re are both important milestones in the development of our platform in Bermuda and the appointment of someone of Jay’s calibre to their respective boards is a strong statement of intention.

“Jay brings to Brit an impressive track-record within the reinsurance arena, and his experience of working across the capital markets will prove extremely valuable as we continue to build on our Bermuda presence and capabilities.”