Munich Re has ploughed $330 million of capital into a new Bermudian-based vehicle that will reinsure some of its life business.

The island-based entity, to be known as Munich Re Bermuda, has been assigned a financial strength rating of A+ by AM Best.

Munich Re Bermuda was formerly named Princeton Eagle West Insurance Company Ltd and was authorised to operate property and casualty business, all of which was in run-off.

The company was renamed Munich Re of Bermuda in March 2018 and was repurposed as a Class C insurer by the Bermuda Monetary Authority in order to serve as an authorised reinsurer of the Munich Re group.

Its main purpose will be as a vehicle to place Munich Re’s related US life reinsurance business.

Munich Re will support the newly repurposed entity by providing an excess of retention and excess of loss reinsurance treaty, as well as the initial $330 million capital injection.