Reinsurance sidecars news

While catastrophe bonds have proven extremely attractive over the last year and a half and there has been an evident shift in some investor allocations to these more liquid insurance-linked securities (ILS), it is important to provide some context and explain that some investors are also shifting the other way.

In commenting on the news that Arthur J. Gallagher (Gallagher) has agreed to acquire the majority of reinsurance broker Willis Re, analysts at KBW highlighted the immediately profitable additions of specialist service units covering analytics and insurance-linked securities (ILS).

Earlier today it was announced that Arthur J. Gallagher & Co. had reached agreement to pay at least $3.25 billion to acquire the treaty reinsurance brokerage operations of Willis Towers Watson’s Willis Re unit.

Global insurance and reinsurance company Everest Re ceded more written premiums to its Mt. Logan Re Ltd. collateralized reinsurance sidecar-like vehicle in the second-quarter of 2021, while at the same time a more benign catastrophe quarter appears to have resulted in fewer losses being ceded.

TransRe, the reinsurance underwriting brand of the Alleghany Corporation, has reported a much improved quarter for its property reinsurance business, as a more benign catastrophe claims environment helped to drive a profitable period.

Athene Holding Ltd., the life and retirement reinsurance company majority owned by investor and private equity specialist Apollo Global, put third-party capital from its Athene Co-Invest Reinsurance Affiliate (ACRA) sidecar to work in a huge $4.9 billion pension risk transfer deal.

Fidelis Insurance Holdings Limited, a specialty insurance and reinsurance firm launched by Richard Brindle, has named Charles Mathias to the newly created role of group director of underwriting, a position that will give him oversight of all underwriting operations.

Insurance holding company W. R. Berkley Corporation is making good use of its first collateralized reinsurance sidecar, now having ceded $139 million of property and casualty reinsurance premiums from across its business to the structure in its first year.

Senior executives of specialty insurance and reinsurance player Brit Ltd. said this morning that the company is benefiting from having expanded its third-party capital assets in 2021, resulting in higher fee income being earned as well.

Randall & Quilter (R&Q) Investment Holdings, the specialist non-life insurance and reinsurance legacy investor and program manager, is proceeding with plans for a collateralised legacy P&C risk sidecar vehicle, marketing an up to $500 million structure to investors, Artemis has learned.