Harambee Re collateralized sidecar in 2018 renewal for Argo

by Artemis on January 15, 2018

The Harambee Re collateralized reinsurance sidecar vehicle has been renewed for the 2018 underwriting year for international specialty insurance and reinsurance firm Argo Group, as it continues to leverage the capital markets to augment its capacity.

The Harambee Re reinsurance sidecar was first launched for the 2013 underwriting year by Argo Group, as the re/insurer began to work with third-party investors to gain access to efficient reinsurance capacity. The Harambee Re sidecar was then renewed for the 2014 and 2015 underwriting years as well.

The Harambee Re vehicle has underwritten both insurance and reinsurance capacity in the past, but from 2015 has been focused on providing capacity to back Argo’s reinsurance underwriting book.

The 2018 renewal sees Argo securing a source of alternative capital to back specific property portfolios underwritten by its reinsurance division Ariel Re.

The company said that the 2018 renewal of Harambee Re continues its, “Successful track record of building relationships with third-party capital providers to support the company’s growing insurance and reinsurance portfolios.”

Argo Group CEO Mark E. Watson III said, “Harambee Re enables us to materially increase underwriting capacity for key business units and provide a more valuable product offering to the market. This renewal ultimately positions us to more aggressively pursue our mission to help businesses stay in business by providing innovative (re)insurance solutions that meet and exceed expectations.”

GC Securities was the sole structuring and placement agent for the 2018 Harambee Re sidecar transaction, while law firm Willkie Farr & Gallagher (UK) LLP acted as legal counsel to Argo Group.

Argo does not disclose the size of its Harambee Re sidecar issuances, but in the past the company has told Artemis that the vehicle allows for for multiple issuances throughout the year, providing the re/insurer with options to use it when the right conditions present themselves to partner with third-party investors seeking access to reinsurance linked returns.

For more details on reinsurance sidecar investments and transactions view our list of collateralized reinsurance sidecars.

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