Reinsurance sidecars news

The financial regulator in Abu Dhabi is asking for stakeholder and industry feedback as it considers developing a framework to support growth of an insurance-linked securities market there, while also seeking input to a concept for a “synthetic sidecar” structure that would sit within a regulated insurance entity.

Speaking today during Munich Re’s 2025 Investor Day event, Thomas Blunck Member of the Board of Management, explained that he considers the insurance-linked securities (ILS) market and its respective sub-segments are more vulnerable to price reductions compared to insurance and reinsurance.

Swiss Re is working on “future ideas” within its Alternative Capital Partners (ACP) division that focuses on insurance-linked securities and third-party capital management, the firm’s CEO said today. While its CFO explained more on the fact the company may need less external retrocession in 2026.

In announcing new targets and a refreshed strategy today, Swiss Re, one of the world’s largest reinsurance companies, has highlighted the role of third-party capital investors in helping to fuel its expansion into natural catastrophe risks over recent years, while also maintaining balanced exposure.

PGGM, the Dutch pension fund investor that invests in insurance-linked securities and reinsurance on behalf of its end-client Dutch pension PFZW, has revealed a meaningful increase in the target allocation size for its investment into the PartnerRe operated Huygens sidecar structure.

As momentum continues to build within the reinsurance sidecar market, these structures are increasingly viewed as an attractive capital sourcing opportunity for managing general agents (MGAs), and investment for ILS managers, hedge or pension funds, and family-office investors, according to Willis Re.

2025 has seen continued growth within the alternative capital markets, supported by steady expansion across property catastrophe and casualty lines, along with increased capital flowing into catastrophe bonds and collateralized reinsurance transactions, greatly reflecting investor confidence, according to Artex Risk Solutions.

A recent report from Barclays Research indicated that current catastrophe bond market dynamics are perceived as being negative for both the reinsurance market and pricing cycle. Lower new cat bond spread multiples seen in Q4 so far indicate a market firing on all cylinders and a protection buying opportunity, but with ramifications for the traditional […]

As the reinsurance market continues to expand and adapt to the current wave of technological change, increasing capital diversity is enabling the development of new products. At the same time, data-driven enhancements in modeling tools and risk-analysis processes are encouraging a broader range of investors to back reinsurance, according to Willis Re.

The Prudential Regulation Authority (PRA) of the Bank of England has published a discussion paper to gather feedback on how the UK’s insurance special purpose vehicle (ISPV) or ILS structures can play a role towards bringing in alternative capital to support life risks and reinsurance in the UK.