Arch Capital sponsors $70m Voussoir Re 2021 sidecar renewal


Arch Capital Group, the Bermuda headquartered insurance and reinsurance specialist, has returned to the capital markets to sponsor an almost $70 million renewal sidecar issuance through its special purpose insurer Voussoir Re Ltd.

voussoir-archVoussoir Re Ltd. was first registered in Bermuda in 2019, as a special purpose insurer and segregated accounts vehicle established for collateralised reinsurance arrangements and issuance of insurance-linked notes to investors.

Back in 2019,  we reported a first $74 million issuance of notes by Voussoir Re Ltd., a collateralised reinsurance sidecar style vehicle that we understood to have been established by Arch Capital, a new third-party capital backed venture for the company.

Arch then returned in 2020 with a second $76.5 million issuance from its Voussoir Re sidecar vehicle, featuring a $20 million Class A tranche of Series 2020-1 notes and a $56.5 million Class B tranche.

A third transaction has now come to light, which we assume to be a nearly $70 million 2021 renewal for the Voussoir Re sidecar structure.

Voussoir Re Ltd. has issued a single $69.92 million tranche of Series 2020-1 Class B participating notes, which have been sold to capital market investors and the proceeds used to collateralize a reinsurance agreement.

The Class B participating notes issued to investors are due March 1st 2024.

We assume that, as in previous years, the Voussoir Re sidecar issuance features a securitization of property catastrophe reinsurance risks from Arch Capital’s book, providing the re/insurer with a route to tap capital market investor appetite to support its underwriting business.

We assume the underlying reinsurance agreement is a quota share, as would be typical of any reinsurance sidecar. However, we cannot confirm this fact as transaction details are limited with these Voussoir Re issuances.

The $69.92 million of capital raised from the sale of Series 2021-1 notes issued by Voussoir Re will presumably have been used to collateralise a quota share across a portfolio of reinsurance business, to the benefit of sponsoring re/insurer Arch Capital.

Voussoir is an architectural term, meaning a tapered stone used within the construction of an arch.

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

Artemis Live - ILS and reinsurance video interviews and podcastView all of our Artemis Live video interviews and subscribe to our podcast.

All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance video content and video interviews can be accessed online.

Our Artemis Live podcast can be subscribed to using the typical podcast services providers, including Apple, Google, Spotify and more.

Print Friendly, PDF & Email

Artemis Newsletters and Email Alerts

Receive a regular weekly email newsletter update containing all the top news stories, deals and event information

  • This field is for validation purposes and should be left unchanged.

Receive alert notifications by email for every article from Artemis as it gets published.