Reinsurance sidecars news

Insurance-linked investors in Bermudian insurer and reinsurer Everest Re’s collateralized reinsurance sidecar Mt. Logan Re Ltd. are set to receive returns as high as 20.2% from their 2015 allocations to the vehicle, according to data sourced by Artemis.

Mt. Logan Re, Ltd., the collateralised reinsurance sidecar type vehicle operated by Bermudian insurance and reinsurance firm Everest Re, has announced the hire of Martin Burke as its Chief Financial Officer, effective immediately.

New York headquartered mutual fund manager Stone Ridge Asset Management, probably the fastest growing ILS and reinsurance fund manager in the market over the last few years, has revealed some interesting thinking about its new Post-Event fund.

Everest Re increased the size of its collateralized reinsurance sidecar Mt. Logan Re Ltd. during January 2016 to $860 million, while also reducing its own contribution to the vehicle to $50 million, Artemis understands, suggesting a greater capital contribution from third-party investors.

Reinsurer Hannover Re increased the size of its K-Cession quota share reinsurance and whole account excess of loss transactions for 2016 by $150m, reflecting the availability of attractively priced capital for retrocession.

The scale of Everest Re’s fully collateralised reinsurance sidecar Mt. Logan Re Ltd. was evident in the reinsurers 2015 results, as the underwriting gain increased significantly year-on-year, although there was no change in size of the vehicle in the fourth-quarter.

In December 2015, registrations of new insurance and reinsurance vehicles in Bermuda featured a number of ILS and collateralized reinsurance focused vehicles, with four new special purpose insurers (SPI’s) taking the total for the year to twenty.

Global reinsurance company Munich Re said today that it has increased its use of the capital markets as a source of efficient capital for risk transfer and retrocession, citing the coverage provided by its Eden Re II sidecar renewal and recent Queen Street cat bond as “valuable”.

Global reinsurance company Munich Re has now listed the second privately placed $284.422 million tranche of Series 2016-1 Class B Section 4(a)(2) notes from its recent Eden Re II Ltd. collateralised reinsurance sidecar issue on the Bermuda Stock Exchange (BSX).

Brit, the global specialty insurance and reinsurance firm with a large presence at Lloyd’s, has renewed its fully collateralised reinsurance sidecar SPI Versutus Ltd. for the 2016 underwriting year, at a 10% increased size of $82.5 million.