Reinsurance sidecars news

Oxbridge Re Ltd., the Cayman Islands based reinsurance company, has now confirmed its two tranche offering of tokenized reinsurance securities that will fund its collateralized reinsurance sidecar vehicle Oxbridge Re NS for 2025, with 20% and 42% return targets.

Voussoir Re Ltd, the collateralized reinsurance sidecar and special purpose insurance (SPI) vehicle of Arch Capital, the Bermuda headquartered insurance and reinsurance specialist, has issued and listed a new series of 2025-3 preferred shares, which marks the first listed by the structure since October 2024.

Japan Post Insurance is considering making an investment of as much as $2 billion into a new reinsurance sidecar-like co-investment vehicle to be sponsored by U.S. life, retirement and annuities insurance and reinsurance company, Global Atlantic Financial Group.

RenaissanceRe, the Bermuda-based reinsurance firm and third-party capital management specialist, is planning to further expand the balance-sheet of its DaVinciRe sidecar-like third-party capitalised reinsurance joint-venture through a $300 million private debt issuance.

AXIS Capital, the specialty insurance and reinsurance company, has registered a fourth collateralized insurer class of company in Bermuda to support further expansion of its Monarch Point Re casualty insurance-linked securities (ILS) platform in 2025.

Munich Re has renewed its retrocessional reinsurance program arrangements to provide $1.55 billion in protection for 2025, utilising both traditional retro and capital markets through its sidecars and catastrophe bonds at a stable level with the prior year.

The Lifson Re collateralized reinsurance sidecar structure is set to be even more valuable in 2025 to owner W. R. Berkley Corporation, the US headquartered insurance holding company, as the Lifson Re sidecar has been capitalised to a higher level for this year, while the quota share cession rate has also been increased.

According to ratings agency AM Best, reinsurance leverage and surplus relief has risen significantly in recent years, driven by strong annuity premium growth, which has driven additional capital to the market, while a number of life and annuity (L/A) insurers have established sidecars to manage expansion and risk-based capitalisation.

According to broking group Howden, inflows are accelerating in ILS arrangements for casualty, managing general agents (MGAs), cyber insurance-linked securities (cyber ILS) and reinsurance sidecars, as capacity providers look to grow existing premium pools.

White Mountains has reported that for full year 2024, its investment into the Outrigger Re collateralized reinsurance sidecar, which supports its property and casualty insurance and reinsurance subsidiary Ark, delivered income of $46 million, down 33% on 2023 as catastrophe losses had a far greater impact.