Brit renews Versutus collateralised reinsurance sidecar, expands it 10%

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Brit, the global specialty insurance and reinsurance firm with a large presence at Lloyd’s, has renewed its fully collateralised reinsurance sidecar SPI Versutus Ltd. for the 2016 underwriting year, at a 10% increased size of $82.5 million.

Versutus Ltd. is Brit’s Bermuda domiciled special purpose insurance vehicle, which it launched a year ago with $75 million of third-party capital, as it joined the group of insurance and reinsurance firms using third-party capital from institutional investors to help them make their underwriting capital more efficient in the challenging market.

In typical sidecar fashion, Versutus helps Brit to access a source of lower-cost capital, while the capital market investors backing the vehicle benefit from a way to share in Brit’s underwriting fortunes and access the returns of its business.

Again, Versutus will support Brit’s property treaty reinsurance portfolio through 2016. For this year the capitalisation of Versutus has been increased by 10% to $82.5 million, with funding said to be secured from a number of third-party investors.

The vehicle will be accepting risk from 1st January 2016 and GC Securities acted as the placement agent for the Versutus Ltd. (Series 2016-1) notes.

Jon Sullivan, Head of Short Tail Reinsurance at Brit commented on the announcement; We are excited to build on last year’s launch of Versutus with this renewal and expansion for 2016. This strategic partnership provides our investors with continued access to Brit’s strong underwriting capabilities and diversified distribution reach – via both our London and Bermudan platforms – as well as all the benefits the Group experiences as one of the largest Lloyd’s syndicates.”

Matthew Wilson, CEO of Brit Global Specialty, also said; “We are delighted to continue broadening and enhancing our capabilities within the capital markets arena as we maximise the efficiencies of our reinsurance programs for 2016.”

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

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