Reinsurance sidecars news

DaVinci, the sidecar-like third-party capitalised reinsurance joint-venture vehicle operated by RenaissanceRe has received an upgrade from Moody’s, with the ratings agency citing DaVinci’s increased scale and long-term profitability as key drivers.

Ruby Re, Reinsurance Group of America’s (RGA) third-party life reinsurance sidecar, has now raised a total of $480 million in capital following the close of its second funding round, which is near the upper limit of the $400 million to $500 million target range for the Missouri-domiciled vehicle.

Earlier this year we reported that global reinsurance company Hannover Re was assessing its risk management need in relation to its K-Cessions quota share sidecar for the second year running, with a potential reduction to be expected and this morning executives from the company confirmed this again.

Hiscox ILS, the dedicated insurance-linked securities (ILS) management arm of the global re/insurer, saw its ILS assets under management (AUM) recover back to $1.5 billion in the third-quarter of the year and the company is seeing growing interest from investors.

Global insurance and reinsurance group Everest has reported significantly increased cessions from its property catastrophe line of business to cells of Mt. Logan Re Ltd., the main underwriting vehicle of its Mt. Logan Capital Management, Ltd. (MLCM) third-party capital management business.

White Mountains has reported that its investment into the Outrigger Re collateralized reinsurance sidecar, that supports its re/insurer subsidiary Ark, generated lower income year-on-year in Q3 with catastrophe losses higher, but it still remained very profitable with a combined ratio of just 58%.

Here’s a reminder to register for our upcoming live webinar on November 21st 2024, in which industry expert speakers will explore the use of alternative capital sources by originators of insurance risk, such as managing general agents (MGA’s).

Enstar, the legacy and run-off reinsurance specialist, has developed a flexible finality solution for insurance-linked securities (ILS) investors. With the Forward Exit Option (FOE) already put to work in a recent transaction, Anguel Zaprianov explained to Artemis in an interview that its application potential is broad.

At MS Amlin, there is an ambition to grow and broaden the scope of the innovative Phoenix reinsurance sidecar series of deals, and William Ho, the CEO of MS Amlin Asia Pacific, told us about the opportunity this presents to investors.

With another week of insights gathered on the potential for any losses from hurricane Milton, thanks to industry loss estimates and catastrophe bond pricing, the net asset values (NAVs) of US mutual investment funds that allocate to catastrophe bonds and other insurance-linked securities (ILS) were mostly marked up again at the end of last week.