Reinsurance sidecars news

During the second-quarter of this year, White Mountains renewed its investment commitment to a collateralized reinsurance structure that provides sidecar-like support to managing general agent (MGA) Bamboo, but the size of the commitment has decreased as Bamboo now has growing third-party reinsurance support.

Mt. Logan Re Ltd., the third-party capitalised sidecar-like structure operated by Everest Group’s Mt. Logan Capital Management unit, has received slightly less in written premiums from its parent through the first nine months of 2025.

For KKR, with committed capital managed in life and annuity reinsurance sidecar structures under Global Atlantic rising rapidly for the investment giant in recent years, these third-party capitalised reinsurance strategies are an increasingly important component of the firm’s results.

At AM Best’s Europe Insurance Market & Methodology Briefing in London this week, analysts noted that insurers and reinsurers are managing capital more efficiently, with the growing role of insurance-linked securities (ILS) emerging as an increasingly important alternative capital strategy for risk management.

Chinese financial markets regulator the National Financial Regulatory Administration (NFRA) has issued guidance for domestic China market insurance and reinsurance companies to sponsor collateralised sidecar structures out of Hong Kong.

After the third-quarter of 2025, White Mountains has reported that its investment into the Outrigger Re collateralized reinsurance sidecar that supports its P&C insurance and reinsurance subsidiary Ark has generated pre-tax income of $40 million from the current underwriting year, up on last year.

Hiscox CFO Paul Cooper said this morning during an analyst call that while growth into property catastrophe reinsurance may slow for the group in 2026, given the rate environment, the company may elect to cede more to third-party capital as it continues to be able to attract investors.

US-headquartered insurance holding company W. R. Berkley Corporation has continued to expand its use of its Lifson Re collateralized reinsurance sidecar through the third quarter of 2025, with written premiums ceded to the sidecar rising 53% year-on-year to $482 million, the highest level the company has recorded to date.

As per accountancy firm Deloitte’s 2026 Global Insurance Outlook, property and casualty (P&C) and life insurers are increasingly turning to investor-backed and other forms of alternative capital to navigate shifting market conditions.

With catastrophe bond and related ILS issuance set to exceed the record $20 billion figure by the end of 2025, this momentum is expected to persist, as Brad Adderley, Partner at global law firm Appleby suggests that issuance will stay at least at its current size for the time being.