Allianz may be planning a second life reinsurance sidecar, Sconset Re II

Global insurance giant Allianz may be planning a new iteration of its Sconset Re life reinsurance sidecar vehicle, with new entities that align with that structures name having been pre-registered in Bermuda, sources have explained.

We understand that two new company structures have been pre-registered on the island which align with the naming convention Allianz used for the first Sconset Re.

Recall that, in late 2024 Allianz launched a Bermuda-domiciled life and annuity focused reinsurance sidecar named Sconset Re Ltd.

The company secured the backing of institutional investors to capitalise the structure, while also partnering with its own investment manager PIMCO and other institutions for additional asset management support for the structure.

Notably, in the second-quarter of 2026, Allianz said it received the first dividend payment from its investment participation in the Sconset Re sidecar, although no figure was disclosed for the amount earned.

Allianz likely also earns some kind of fee income, share of income, or ceding commission benefits from the business it transfers to the Sconset Re sidecar from its life and annuities business.

At its launch, the company initially ceded a US $4 billion block of fixed index annuity risk to the sidecar, while it expected that Sconset Re would also see a further US $5 billion to $10 billion of new life insurance annuity related risks reinsured to it over time.

We understand that the company name Sconset Re II Ltd. has now been pre-registered in Bermuda, which we’re told by sources is expected to be a new iteration of the sidecar vehicle for Allianz.

In addition, a limited partnership structure named Sconset Reinsurance II Capital LP has also been pre-registered, we understand.

No details are as yet available on any forthcoming transaction, but it does seem likely that Allianz is beginning to plan for another iteration, or follow-up to the initial Sconset Re sidecar vehicle, to launch at the appropriate time.

Which implies that the company is satisfied with the first reinsurance sidecar, in terms of the risk transfer and economics, and sees the value in continuing this third-party capital strategy, or building it out over time.

There are no guarantees this sidecar appears, of course, given we are told the structures have not yet been fully registered or licensed.

There’s also no certainty Sconset Re II Ltd. would be another life focused reinsurance sidecar vehicle, although the name alignment might suggest that is the most likely use-case for these new entities, if or when they get put to use.

Find details of numerous reinsurance sidecar investments and transactions, including life reinsurance sidecar structures, in our directory of collateralized reinsurance sidecar transactions.