TransRe, the reinsurer arm of Alleghany Corporation owned insurance and reinsurance group Transatlantic Holdings, has registered what appears to be the latest in its series of fully-collateralized reinsurance sidecars, Pangaea Reinsurance IX Ltd.
The Pangaea Reinsurance IX Ltd. special purpose insurance vehicle was registered in Bermuda on the 12th May, almost two years after TransRe registered the last iteration of its sidecar, Pangaea Reinsurance IV. TransRe has been working with third-party investors on the Pangaea range of sidecars since 2010, allowing capital market investors to share in its underwriting while also earning a fee for managing the money on investors behalf.
It’s safe to assume that TransRe registered its latest sidecar in May in order to utilise it for the mid-year June/July reinsurance renewals, giving it a platform to attract additional third-party investor capital to broaden its underwriting for the key renewal season with a source of efficient capital backed by investors.
We’re not sure why the jump in numbering on the latest Pangaea vehicle. Naming has been consecutive previously, with Pangaea Reinsurance I Ltd. launched in 2010, Pangaea Reinsurance II and III launched in 2011 and then Pangaea Reinsurance IV in 2012.
Alleghany, through TransRe, has been building out a capability in third-party reinsurance capital management, with TransRe having an investment in specialist insurance-linked securities (ILS) manager Pillar Capital Holdings Limited as well as its global sidecar facilities under the Pangaea branding.
Alleghany also owns a stake in Ares Management LLC, an $80+ billion alternative asset manager, which alongside TransRe’s third-party and ILS capital management positions Alleghany well to serve the growing demand for ILS and reinsurance linked investments.
We’ve added Pangaea Reinsurance IX Ltd. to our list of collateralized reinsurance sidecars and will update you if anymore information about the sidecar comes to light.