US insurance giant Liberty Mutual’s Bermuda-based sidecar Limestone Re has bolstered its collateral by $278mn after a new private placement.

The sidecar provides collateralised cover as part of Liberty’s US property cat reinsurance programme.

It also reinsures the group’s domestic homeowners book and its global property reinsurance risk.

“Reinsurance through the Limestone Re platform forms an integral component of Liberty Mutual’s long-term strategy for accessing third-party capital,” said James Slaughter who heads up underwriting for Liberty Mutual’s Global Risk Solutions unit.

“Liberty Mutual is able to leverage our global distribution platform to provide, through reinsurance with the Limestone Re platform, insurance-linked securities (ILS) investors diversified pools of risk while concurrently bringing investors as close as possible to the underlying insurance risks,” he went on.

Slaughter said the transaction brought the total Limestone reinsurance collateralized capacity placed with ILS investors to nearly $700mn.