Reinsurance sidecars news

AXIS Capital, the Bermuda based specialty insurance and reinsurance company, has increased its activities with third-party investors in 2023, ceding 17% more in reinsurance premiums to them, than it had in the prior year.

Catastrophe bonds and insurance-linked securities (ILS) newly listed on the Bermuda Stock Exchange (BSX) in 2023 soared by 195, taking the total value of all ILS securities listed on the exchange to a new high of $59.15 billion.

Re/insurer MS Amlin has again returned to the capital markets to source catastrophe retrocession through a renewed quota share arrangement via reinsurance sidecar vehicle Phoenix 2 Re Pte. Ltd., lifting the coverage available to the company from the sidecar program to almost $87.5 million in the process.

Fitch Ratings has estimated that alternative reinsurance capital, largely deployed in insurance-linked securities (ILS) formats, will have reached $105 billion by the end of 2023, once the final figures are known.

French reinsurance company CCR Re has announced a sixth renewal of its long-standing collateralised and securitised reinsurance sidecar vehicle, 157 Re, giving away little in detail again, but saying that the retrocession market was seen as continuing to be “tight” this year.

Third-party capital in reinsurance, so alternative capital or insurance-linked securities (ILS) market capacity, was more than replenished in 2023, as lost capital was replaced and market growth accelerated to levels beyond expectations at the start of the year, rating agency AM Best has said.

Munich Re has now completed the placement of the second listed tranche of its Eden Re II Ltd. collateralized reinsurance sidecar for 2024, which lifts the reinsurers capital market investor-backed retrocessional protection from the structure to $150 million for this year.

Investors in reinsurance sidecar structures have been “handsomely rewarded” for their commitment to the product in 2023, broker Aon has said, as these reinsurance-linked investments have experienced strong returns of above 30% in some cases.

Stone Ridge Asset Management, the New York based asset manager an alternative risk premia focus, has experienced continued asset under management growth for its mutual insurance-linked securities (ILS) fund strategies, with total AUM rising another 10% in the last quarter to reach $3.9 billion at October 31st 2023.

Stone Ridge Asset Management, the New York based asset manager with an alternative risk premia focus, made well over $1 billion in reinsurance trading profits over the course of 2023, with record returns delivered to investors by both of its mutual insurance-linked securities (ILS) fund strategies, according to CEO Ross Stevens.