CCR Re, the French state-owned reinsurance firm, has renewed its 157 Re collateralised reinsurance sidecar vehicle for 2022 and said that it has increased the size of the sidecar by 22% compared to the prior year.
Once again, CCR Re has not disclosed the size of its reinsurance sidecar structure, which we understand to have been relatively small in prior years.
But the growth of 22% for 2022, suggests that CCR Re is having some success increasing the role of collateralised reinsurance within its business and lifting the amount of third-party investor capital that supports its retrocession needs.
In fact, CCR Re has said that a new investor has been added to support the 157 Re reinsurance sidecar for 2022, helping to drive this growth.
This is now the fourth consecutive year CCR Re has sponsored a 157 Re sidecar issuance.
The 157 Re reinsurance sidecar from CCR Re remains the first and only insurance-linked securities (ILS) vehicle to be governed under French law.
The reinsurer noted that even in the tight retrocession market around the January 2022 renewal season, where capacity was reduced for many retro offerings and for quota share sidecars, it still managed to increase the 157 Re vehicle by 22%.
This is “proof of the increasing investors’ interest in the CCR Re Property Cat portfolio,” the company explained.
Adding that, “It owes much to the renewed confidence of Boussard & Gavaudan Investment Management LLP (BGIM) who has renewed its capacity for the fourth consecutive year, as well as the arrival of a new investor to support 157 Re’s growth.”
Bertrand Labilloy, Chairman & CEO of CCR Re commented, “we welcome the growth and expansion of 157 Re’s investor’s basis. It confirms our Property Cat underwriting policy and strengthens our strategy of long-term partnership and alignment of interests with investors.”
CCR Re also said that it worked with Willis Towers Watson Securities Europe Limited as structuring and placement agent for the 2022 reinsurance sidecar issuance.
France Titrisation acted as the management company, while the custodian bank was BNP Paribas Securities Services and Linklaters provided legal advice.
For details of many reinsurance sidecar investments and transactions over the history of the ILS market, view our comprehensive list of collateralized reinsurance sidecars transactions.