Torus and Montpelier Reinsurance have entered into an agreement which will see Torus sell the renewal rights to its property catastrophe reinsurance book of business to Montpelier Re with immediate effect. Torus will continue to participate in the catastrophe reinsurance space but purely as a sidecar providing capacity to Montpelier Re.
The renewal rights are transferred to Montpelier Re with immediate effect. From 1st January 2012, Torus will begin providing sidecar capacity to Montpelier Re. They haven’t announced how large their commitment will be or how much capacity will be dedicated to the sidecar activities.
Clive Tobin, Chief Executive of Torus said; “Torus’ strategy remains to build a global specialty insurer with niche exposure to reinsurance. With the continued expansion opportunities we see in our insurance operations, along with our modest ambitions for niche reinsurance, we have determined it is more effective for our catastrophe reinsurance business to be integrated into the larger Montpelier portfolio, and for us to continue our catastrophe reinsurance participation through a sidecar arrangement.”
Christopher Harris, President and CEO of Montpelier commented; “The acquisition of these renewal rights and accompanying sidecar capacity further enhances our position in one of our core markets at a time when conditions are visibly improving.”
By acting as a sidecar and effectively providing additional capacity to Montpelier Re, Torus can focus on their core businesses of casualty, speciality and property insurance, while still maintaining an interest in the catastrophe reinsurance space.