Reinsurance sidecars news

Yesterday in Monte Carlo, Munich Re board member Stefan Golling told a media briefing that alternative reinsurance capital and the catastrophe bond market in particular, are not helping to narrow the insurance protection gap, while highlighting the reinsurers’ independence from third-party capital.

As PwC released its sixteenth Global Insurance Run-Off Survey report today, we took a look at what the legacy reinsurance sector is saying about the growing use of alternative capital in the space, as well as how legacy solutions are now serving insurance-linked securities (ILS) funds and investors as well.

Speaking in Monte Carlo today at a S&P Global Ratings briefing during the annual reinsurance event, Maren Josefs, Credit Analyst at S&P Global, said it may be time to rethink the name alternative capital, as it was really always designed to complement the traditional reinsurance market and in recent years has become increasingly aligned and […]

Speaking today at a briefing held in Monte Carlo at the Rendez-vous event, Fitch Ratings analysts said the expectation is that property catastrophe reinsurance rates will keep softening and attachments may decline somewhat, but through this they anticipate discipline from the ILS investor base.

Ryan Specialty, the international insurance group, has launched a collateralized reinsurance sidecar named Ryan Alternative Capital Re, Ltd. alongside re/insurer AXIS Capital and raised approximately $400 million to fund the structure thanks to backing from investment firms Flexpoint Ford, LLC and Sixth Street.

Lloyd’s specialist Apollo has been approved to launch a sidecar-style syndicate in the market, a strategic move that highlights a desire to enhance reinsurance efficiency and to extract more value from the insurance business underwritten through its platform, for its capital partners and itself.

There has been a notable increase in the target investment allocation range for reinsurer SCOR’s sidecar vehicle Concordia Re, in the insurance-linked securities (ILS) portfolio managed by PGGM, the Dutch pension fund investment manager, on behalf of its end-client Dutch pension PFZW.

The amount of alternative capital in reinsurance supplied by insurance-linked securities (ILS) strategies and structures has reached a new high of $121 billion as of the middle of 2025, which Aon Securities notes was driven by strong catastrophe bond growth and supported by ongoing expansion of the sidecar sector as well.

The recent growth trend in the alternative reinsurance capital market is forecast to persist into 2026, as supply of capital from investors and demand from sponsors seeking risk transfer remain robust, Fitch Ratings has said.

Enstar, one of the largest legacy and run-off reinsurance specialists in the world, has launched its first direct third-party capital play, a $300 million casualty reinsurance sidecar named Scaur Hill Re Ltd. which is backed by a number of institutional investors, Artemis has learned.