Stocks

The asset manager’s reinsurance funds shrank 17% in its fiscal year to end October to reach $2.6bn.

The full size of the sidecar for 2023 will be known when Class B notes are issued in January.

The update to the October figure implies the ultimate number will comfortably breach the $50bn mark.

TigerRisk Capital Markets & Advisory acted as exclusive structuring and placement agent for the reinsurance sidecar.

The company was recently licensed to expand into non-life insurance lines and now plans to expand into direct P&C insurance business in the US through partnerships with MGAs.

The deal protects the carrier’s capital in the event of large nat-cat or mortality losses.

The exit highlights increasingly difficult conditions in the retro and reinsurance markets.

Quota shares, collateralised re, ILWs and event-linked swaps will also form part of the offer.

The Bermuda Monetary Authority expects carriers on the island to take a 25% share of the total industry loss.

Analysts said attachment points are now far behind the rate of inflation over the period.

The Canadian investment fund now owns almost 3.8 million shares of the personal lines insurer, compared to 281,773 in Q2.

Ludlow Re will grow “opportunistically” where there is confidence of producing attractive returns.