Hamilton Re, the Bermuda-based reinsurance unit of Hamilton Insurance Group, has set up its first collateralized reinsurance sidecar vehicle, capitalising the special purpose insurance vehicle Turing Re Ltd. with $65 million of capital.
Turing Re will provide Hamilton Re with a source of third-party investor sourced collateralized capacity, to support the company’s global reinsurance portfolio.
The SPI Turing Re has been capitalised to the tune of $65 million, which was raised in a private placement syndicated to multiple investors the company said.
The Turing Re reinsurance sidecar will have its capital put to work supporting Hamilton Re’s property reinsurance treaty book of business.
“This transaction represents an exciting next step in the evolution of Hamilton Re as a diversified company meeting the needs of our current and future clients,” commented CEO of Hamilton Re Kathleen Reardon.
Hamilton Re is leveraging its analytics and technology resources behind the Turing Re sidecar, we understand, hoping to create a vehicle that offers a differentiation, by following the fortunes of the reinsurers underwriting while using intelligent portfolio selection.
We believe that Turing Re will have its own reinsurance brand, which clearly reflects the importance that Hamilton Re places on this its first capital markets venture.
As reinsurers seek efficiency utilising SPI’s as sidecars to share risks with capital market investors to generate fee income is a natural strategy to follow. Hamilton Re joins many others now in leveraging third-party capital as a way to augment the efficiency of its own underwriting capacity.
TigerRisk Capital Markets & Advisory acted as the sole structuring and placement agent for this Turing Re Ltd. transaction, while Willkie Farr & Gallagher LLP acted as legal counsel to Hamilton Re.
For more details on reinsurance sidecar investments and transactions view our list of collateralized reinsurance sidecars.
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