Reinsurance Sidecar

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A financial structure established to allow investors (often external or third-party) to take on the risk and benefit from the return of specific books of insurance or reinsurance business.

Increasingly, global insurers and reinsurers are establishing sidecar vehicles as a means of driving more competitive pricing, while providing a source of capacity for growth.

A sidecar transaction supports the diversification of revenue streams and risk, and in today’s risk transfer landscape, the majority of reinsurers now leverage third-party capital structures, such as a sidecar vehicle, to earn fees, but also to augment their capacity.

Artemis tracks the expanding list of collateralized reinsurance sidecar vehicles, including the size and exposure of each transaction, where information is available.

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