Reinsurance sidecars news

Full-service global law firm Locke Lord has announced the hiring of J.P. Hong, an experienced insurance-linked securities (ILS) lawyer that previously worked at Sidley, seeing the ILS market as a strategic growth area for the company.

For the first-half of 2024, White Mountains has reported that its investment into the Outrigger Re collateralized reinsurance sidecar, that supports its re/insurer subsidiary Ark, generated the company higher pre-tax income, at $18 million.

At Hiscox Group, as the mix of third-party capital adjusts with new inflows into insurance-linked securities (ILS) structures and continued planned outflows as money gets returned to investors, Hiscox CEO Aki Hussain said today that this won’t affect the firm’s underwriting risk appetite.

Hiscox ILS, the dedicated insurance-linked securities (ILS) management arm of the global re/insurer, has successfully raised gross inflows amounting to $300 million in the first-half of 2024, with capital from new and existing investors flowing to its collateralized reinsurance sidecar and ILS funds.

There are an increasing number of insurance-linked securities (ILS) and collateralized reinsurance formations in Bermuda that have a focus on areas of the property and casualty (P&C) market outside of natural catastrophe risks, Damian Sealy of PwC Bermuda explained in a recent video interview.

Investor and private equity giant Apollo Global’s CEO Marc Rowan has hailed the completion of its latest successful capital raise for a new vintage of the life and annuity focused reinsurance sidecar structure for reinsurer Athene as “the largest equity sidecar in the industry.”

There were no major changes to Conduit Re’s retrocession arrangements around the middle of this year, but the company is always keeping other third-party capital partnerships such as sidecars under review, CEO Trevor Carvey has explained.

AXIS Capital, the Bermuda based specialty insurance and reinsurance company, has continued to recognise higher fee income from its work with third-party investors in the second-quarter of 2024, with more fees earned through risk-sharing relationships with so-called strategic capital partners.

The Bermuda Stock Exchange (BSX) maintained its dominant position in providing a venue for the listing of catastrophe bonds and insurance-linked securities (ILS) in the first-half of 2024, with the total value of all ILS securities listed on the exchange rising further to $59.74 billion at the end of the period.

The broadly diversified portfolio of insurance-linked securities (ILS) and reinsurance investments managed by pension investment firm PGGM on behalf of end-client the Dutch pension PFZW, has returned 5.5% over the first-half of 2024.