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Argo’s Harambee Re collateralized sidecar renewed for sixth time


International specialty insurance and reinsurance underwriter Argo Group has renewed its Harambee Re collateralized reinsurance sidecar vehicle for the 2019 underwriting year, as the firm continues to tap into the capital markets for protection and to augment its capacity.

It’s the sixth annual renewal of the Harambee Re sidecar for Argo, the company said today, demonstrating its commitment to partner with the insurance-linked securities (ILS) funds and investors who back these retrocessional reinsurance arrangements for the company.

The Harambee Re reinsurance sidecar was first launched for the 2013 underwriting year by Argo Group, at first providing backing to Argo’s insurance as well as reinsurance book. But in recent years that has changed to a focus on retrocessional protection for the reinsurance underwriting operations.

For 2019, Harambee Re will provide additional catastrophe reinsurance capacity for specific property portfolios of risk underwritten by Ariel Re, Argo’s reinsurance platform since it acquired the firm in 2017. Again, Argo has not disclosed the size of its sidecar transaction.

“We’re excited to have completed this, the sixth renewal for Harambee Re, which reflects the strong and enduring relationships we have built with our third-party capital partners,” explained Argo Group CEO Mark E. Watson III.

“Harambee Re continues to enable us to materially increase underwriting capacity and provide a more valuable product offering, which ultimately benefits our clients and intermediary partners,” Watson added.

Argo said that this latest Harambee Re sidecar transaction “continues Argo Group’s successful track record of building relationships with third-party capital providers to support the company’s growing insurance and reinsurance portfolios.”

GC Securities, the capital markets arm of reinsurance broker Guy Carpenter, acted as sole structuring and placement agent for this sidecar issue, while Willkie Farr & Gallagher (UK) LLP acted as legal counsel .

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

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