Reinsurance sidecars news

Accelerant, the insurtech that aims to help its members exchange and transfer risk more effectively and also connect them with long-term capital, has launched a $175 million reinsurance sidecar structure named Flywheel Re.

Rating agency Moody’s Investors Service is the latest to forecast a continuation of reinsurance pricing trends, with more rate momentum predicted and additional hardening at the January 2023 renewals.

American International Group (AIG) is looking to take control of its reliance on and access to reinsurance capital for its high-net-worth property business, and plans to set up a new third-party capital backed structure to support a shift of cat-exposed property underwriting to the non-admitted market.

TransRe, the reinsurance underwriting brand of the Alleghany Corporation, has continued its pull-back from property catastrophe reinsurance exposures during the second-quarter of the year, with another 17.2% reduction in premiums.

Global reinsurance firm Swiss Re has set up a new insurance-linked securities (ILS) venture, launching an SEC registered investment adviser today named Swiss Re Insurance-Linked Investment Advisors Corporation (SRILIAC), which will have a focus on catastrophe bond investment management.

Insurance holding company W. R. Berkley Corporation has significantly expanded its use of the Lifson Re collateralized reinsurance sidecar vehicle during the first-half of 2022, ceding much more in the way of premiums to investors through the structure.

Specialty insurance and reinsurance player Brit Ltd. reported delivering more income to its third-party capital partners and investors in its ILS-style reinsurance structures through the first-half of the year in 2022.

RenaissanceRe, the Bermuda-based reinsurance firm and third-party capital management specialist, added almost $568 million of additional capital to its range of insurance-linked securities (ILS) structures and joint-venture vehicles during the second-quarter of the year.

The Arch Capital Group sponsored collateralized reinsurance sidecar style special purpose insurance (SPI) vehicle Voussoir Re Ltd. has made another issuance of shares, the third so far that we’ve seen during 2022.

It’s becoming increasingly clear that losses to the aviation class of insurance and reinsurance business caused by the Russia – Ukraine conflict have the potential to impact retrocessional covers and perhaps some third-party capitalised sidecars.