Swiss Re Insurance-Linked Fund Management

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SCOR launched $100m single-investor worldwide CAT XL sidecar


SCOR, the French headquartered global reinsurance company, has launched a new collateralized reinsurance sidecar vehicle in recent months, with a $100 million, single-investor sidecar that incepted in April 2021, the company revealed today.

SCOR logoSCOR has long been a company that taps into the capital markets for support on a retrocession and reinsurance partnership basis, leveraging third-party and alternative reinsurance sources to help it manage its peak exposures, both of the natural catastrophe risk and life sides of its business.

In the past, SCOR’s flagship third-party capital vehicles have all been its Atlas named structures, from the original Atlas sidecars and catastrophe bonds the company has been sponsoring since at least 2000.

Now, the company has revealed a new catastrophe risk focused reinsurance sidecar, although at this stage we do not have a name for it to share with you unfortunately.

SCOR has launched a new single-investor sidecar vehicle that incepted at April 1st 2021.

This new reinsurance sidecar is structured to provide coverage on a collateralized quota share basis, with the subject business SCOR’s worldwide catastrophe excess-of-loss reinsurance book (worldwide CAT XL).

The fact the new sidecar incepted at April 1st suggests it features a true worldwide portfolio, including Japanese property catastrophe reinsurance business that also tends to renew at April 1st.

SCOR said that this new single-investor sidecar has initially been launched at $100 million in size.

This is likely a figure the company will want to expand, as it has ambitions to increase its use of third-party and alternative capital, the firm said today.

This new catastrophe XL collateralized reinsurance sidecar continues the trend of major reinsurers launching quota share partnerships with single, large investors.

Other reinsurers that have also followed this approach include SCOR’s rivals Swiss Re and Munich Re, both of which have sidecar partnerships with Dutch pension investor PGGM.

As we’ve explained before, SCOR also has a sidecar that protects its life business against longevity risks, with its quota share retrocession vehicle named Mangrove Insurance PCC Limited through which it transfers some of its longevity risk to third-party investors.

Find details of numerous reinsurance sidecar investments and transactions in our directory of collateralized reinsurance sidecars transactions.

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