Reinsurance sidecars news

As use of third-party capital within life annuity reinsurance structures including sidecar vehicles increases, a new estimate from reinsurance broker Guy Carpenter, as reported by rating agency AM Best, suggests around one-third of capacity is now from third-party investor sources.

Wilton Re, a provider of in-force and reinsurance solutions, is partnering with Sun Life Financial Inc., to launch Windsor Life Re, a new U.S. and Bermuda based company that will initially act as a kind of life and annuity reinsurance sidecar for the company and is expected to deploy around US $900 million in capital.

Reinsurance Group of America (RGA) expects to have its first third-party capitalised life reinsurance sidecar Ruby Re fully-deployed this year and the company is already evaluating a second iteration of the structure, an executive has said.

A recent report from ALIRT Insurance Research suggests that steady growth amongst Bermuda reinsurers and sidecars are responsible for a significant portion of the U.S. life insurance sector’s expansion in recent years.

Arch Capital, the Bermuda headquartered insurance and reinsurance specialist, continues to utilise its Voussoir Re Ltd. collateralized reinsurance sidecar and special purpose insurance (SPI) vehicle to help third-party investors access the returns of its underwriting, with a new preferred share issuance from the structure in 2026.

Willis Re, the reinsurance advisory and brokerage firm, has signed a definitive agreement to acquire the US Reinsurance division of BMS Group (BMS Re, US). The deal includes BMS Intermediaries Inc., BMS Capital Advisory LLC, and BMS Re’s associated US reinsurance broking team based in London.

US-headquartered insurance holding firm, W. R. Berkley Corporation, reported higher premiums being ceded to its Lifson Re collateralized reinsurance sidecar for both the second-quarter and first-half of 2026, while the company also recognised more fee income being earned from the structure.

Mangrove Property Insurance Company, the Florida based specialist insurer, has secured a record-setting catastrophe reinsurance programme for the 2026 Atlantic Hurricane Season, which is set to provide protection against both the frequency and severity of catastrophe events, with coverage reportedly extending to a 1-in-175 year storm.

The Bermuda Stock Exchange (BSX) continued to grow its market share of catastrophe bonds and other insurance-linked securities (ILS) in the second-quarter of 2026, ending the period with a record-high $70.5 billion of ILS related listings on the exchange.

As alternative reinsurance capital, so that deployed through insurance-linked securities (ILS) and related collateralized structures, continues to expand and gain momentum across the reinsurance market, this pace is expected to continue, and according to Laurent Rousseau of broker Guy Carpenter, this will lead to a greater space for financial investors.