ACE launches Altair Re II, $95m collateralized reinsurance sidecar

by Artemis on January 7, 2014

ACE Limited, one of the world’s largest multiline property casualty insurance and reinsurance groups, has announced the launch of its second Altair branded fully-collateralized reinsurance sidecar, named Altair Re II.

Altair Re II is a $95 million special purpose vehicle which is designed to provide ACE with a source of additional fully-collateralized reinsurance capacity to augment its global reinsurance business. It is the firms second Altair sidecar transaction, after it launched the $95m Altair Re in April 2013.

The capital provided by Altair Re II will be used to support the ACE Tempest Re global property catastrophe reinsurance portfolio.

“Similar to our first Altair Re vehicle, Altair Re II gives us additional quota share capacity to meet the diversified property catastrophe needs of our insurance and reinsurance company clients,” commented Jacques Q. Bonneau, Chairman of ACE Tempest Re Group.

Altair Re II expands ACE Tempest Re’s capacity through quota-share, allowing it to provide increased capacity to clients and giving it a pool of potentially more efficient and lower-cost capital to utilise in its underwriting.

Artemis understands that this second Altair sidecar transaction allowed ACE to broaden the panel of third-party investors who provide collateralized capacity to its property catastrophe business.

Bonneau continued; “Capital markets investors continue to benefit from ACE Tempest Re’s track record of conservative underwriting and consistent profitability, and our desire to partner with these investors for both the short and long term.”

Willis Capital Markets & Advisory acted as structuring and placement agent on the transaction.

This is the fourth collateralized reinsurance sidecar launch covered on Artemis in recent weeks. The sidecar is currently seen as a good opportunity for investors keen to expand their exposure to the global reinsurance market.

Other recent sidecar launches:

Aspen launches Silverton Re, collateralized quota share sidecar.

SCOR launches $55.5m Atlas Reinsurance X sidecar.

Argo renews Harambee Re collateralized reinsurance sidecar for 2014.

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