Sidecars

The offering is born out of software Ledger developed to manage its own portfolio since 2021.

The firm will support administration of casualty ILS and other data-rich transactions.

The outcome of Eaton Fire subrogation is an uncertainty for some vehicles.

Carriers are grappling with a rush of investor interest in longer-tail lines.

Mt Logan’s Q3 loss ratio improved by 44.2 points to 11.5% for the quarter.

Pre-tax income at the vehicle was $30mn in the first nine months of 2025.

CFO Vogt added that the vehicle’s impact from earned premiums should ramp up from 2026 through 2029.

Competition on price from traditional markets is weighing on bond market momentum.

The sidecar was launched today by the Bermudian reinsurer and investment firm Carlyle.

The capital will provide retro cover for life-focused reinsurer Fortitude Re.

Investor interest is warming up following a colder spell over the past several years.

Key topics include private ILS growth prospects and the longevity of longtail interest.

A cat-focused vehicle is “the missing piece” of Hannover Re’s ILS offerings, said Silke Sehm.

It is understood around $1bn of premiums could be ceded to the proposed vehicle.

The Bermuda reinsurer has been active in ILS since launching in 2007.

The sidecar will support five programs providing specialty frequency coverages.

Sources said that the carrier has held preliminary talks with private debt investors.

Fleming’s attempt follows those of other legacy carriers that have had recent successes raising capital.

Ryan Alternative Capital Re was launched in partnership with Axis Capital.

The vehicle will be capitalised by an asset manager with more than $100bn in AuM.

Bohm has held senior roles at BMS, Swiss Re and Aon during his career.

The capital supported sidecar-style syndicates and reinsurance start-ups.

The agency noted inflows to cat bond funds and investor interest in private ILS.

Dedicated reinsurance capital is on track to increase by 8% in 2025, the broker said.

The global specialty player is also exploring ILS offerings across specialty and cat bonds.

The CUO has added the role of head of private ILS, joining the executive team.

The purchase brings Sompo an established ILS platform as part of the deal.

The ILS play will make the business more capital efficient under new owner Sixth Street.

The reinsurer plans to repeat its 2025 purchasing for property and specialty protections.

The sidecar took $19mn of cat losses relating to the California wildfires.

In Q2 last year, Everest ceded $26mn in losses to Mt Logan.

Investors are drawing lessons from life deals to find new routes into insurance markets.

The vehicle will support Ascot’s casualty business in the US and Bermuda.

The Bermuda SPI will write a quota share of SageSure’s captive Anchor Re.

The PRA will also have to report on turnaround time for new approvals against 10-day and six-week targets.

The Diversified Alternative Fund’s allocation to cat bonds was up by 31% from $386mn at 31 January.

The Cayman Islands-domiciled SPI now has four institutional backers.

Property cat-focused sidecar capital was up by approximately 10% in H1.

The sidecars will provide capacity for reinsurers and large insurance carriers.

The awards celebration took place at the Hilton Bankside on 25 June.

The sidecar renewed at $230mn for 2025.

She was previously head of investor relations and business development for North America and Australia at Securis.

ILS offers efficient capital for underwriters, but casualty ILS transactions are complex.

Fox highlighted the increasing role of alternative capital and creative financial vehicles.

The ILS manager’s total AuM increased to $2.2bn in 2024 from $1.7bn the year prior.

Fales will focus on creating investment opportunities for the carrier’s specialty reinsurance portfolios.

Wildfire losses from fronting and ILS activities were EUR438mn.

The buzz in the air at ILS Connect told of a market entering its next growth phase.

Commutations need to be optimal for the sponsor and the investor to avoid sponsors taking back chunky risks.

The renewal and upsizing of the Trouvaille E&S sidecar highlighted the market’s potential.

Investor interest and capital flows point to potential for ILS proliferation.

This year’s ceremony will include the inaugural Women in ILS Award presentation.

An allocation to insurance could “feel like a nice, calm port in the storm” amid wider market volatility.

The program will provide excess casualty coverage across a broad range of industries.

Sutton National and Bamboo Ide8 secured $170mn of sidecar and cat bond protection.

Trouvaille II raised $580mn for 2025, compared to $325mn in 2024.

The cat bond market surpassed $50bn by the end of Q1 2025.

The vehicle will take a quota share of all of the risks underwritten by Ryan Specialty’s MGA arm.

Premiums ceded to the ILS vehicle increased by 76% to $433mn.

The reinsurer had taken the opportunity to buy more limit across event and aggregate covers.

GP Affluent Markets will look to serve high-net-worth individuals.

The largest individual net loss at EUR230mn was caused by Hurricane Milton.

The role oversees the $187bn Canadian pension plan’s ILS allocation.

Dispersion of returns was high, with the range 0.87% to -3.71%.

The firm has rotated capital in sidecar Voussoir toward direct investor relationships.

DaVinci equity plus debt stood at $3.25bn as of 31 December.

There was a slight increase in DaVinci and Fontana from 31 December 2024 to 1 January 2025.

The firm ceded $417mn of premiums to the sidecar in 2024.

Wildfire is rarely singled out as an exposure that can shift portfolio outcomes.

The firm will match segregated accounts of portfolios to investor mandates.

The combined entity ranks third in the Insurance Insider ILS leaderboard.

The LA fires ‘demonstrate the magnitude of tail events not well captured in modelling’.

The carrier’s reinsurance premiums ceded rose by 32% to $3.4bn in 2024.

Over 2024, four hurricanes added 13 points of cat-loss impact to the combined ratio.

The reinsurer has cut the cession rate to 33% from 40% last year.

Theokli joined the company in 2021 as a senior underwriter.

A negative January return will be unprecedented for ILS industry.

Company touts growing investor demand for Asian cat risks.

The reinsurer reported total fee income of $77.1mn.

The fund returned 15.69% in calendar year 2024.

Several new awards are up for grabs at this year’s event.

The vehicle is smaller by 8% as White Mountains’ participation grew.

The renewal marks the seventh issue of the retro vehicle.

Cat bond investors have earned a cumulative 39.6% over 2023 and 2024.

The vehicle is yet to recover to 2021 levels of $235mn.

The broker anticipates strengthening investor demand for collateralised re.

The Bermuda based entity is expected to continue on its “responsible growth trajectory”.

Casualty ILS made inroads, while hurricane hedging strategies came into focus.

The firm will also act as sub-adviser to the Brookmont ETF cat bond fund.

Everest is in the process of transforming its ILS offering.

The firm said it benefited from favourable retro market conditions.

Former ILS investors who left the space have looked again and re-allocated.

The ILS manager’s existing Medici cat bond strategy stood at $1.68bn in assets under management (AuM) as of 30 September.

CEO Jonathan Zaffino said he saw opportunities for expansion in casualty.

The firm is understood to be reviewing contracts to bind coverage for 1 January.

Moderate impacts to ILS returns are anticipated from Hurricane Milton.

The headline figure of $7.72bn includes $3.11bn of DaVinci equity plus debt.

Strong growth in fee income builds on the favourable rating environment.

The ILS unit’s AuM was higher by $100mn compared to $1.9bn as of 30 June.

The sidecar was established to enhance RGA’s access to capital for its US asset intensive business.

The reinsurer confirmed its intention to reduce the K-Cession sidecar for 2025.

Ceded losses grew by 69.2% in Q3 from the prior year quarter to $44mn.

The combined ratio included 17 points of catastrophe losses in the third quarter.

In its first deal, Enstar received $350mn in premium for certain 2019 and 2020 business in AlphaCat’s portfolio.

The reinsurer is planning to drop its cession rate from 40% to 30%-35%.

Reserve risk specialist Enstar has struck its first deals in the ILS space this year.

Cat bonds, private ILS and retro were all kept at “strongly overweight”.

The ILS allocation increased in dollar terms and held steady in euros.

Many in the ILS sector are bullish on Milton losses falling at the lower end of earnings impacts.

Losses from the hurricane may not significantly impact on many funds’ annual returns.

Risk remote strategies, including private ILS, have outperformed higher risk strategies over the last decade.

The Dutch scheme is the largest ILS allocator with a long list of mandates within the sector.

The ILS industry alumnus is understood to have two ILS investors lined up.

Hurricane Milton will show the ILS product behaving as investors expect it to.

This is a far narrower drop than post Ian, when the index was lost 10%.

A $40bn Milton loss should barely dent many ILS returns but will trap some capital.

The raise includes minority investments from Nationwide, Enstar and others.

The executive has worked for Hamilton for over a decade.

The biggest limitation to growth is supply, given ILS capital “reticence” after the 2016-22 years.

Katarina Scamborova has been appointed president of the new vehicle.

The facility will provide reinsurance coverage over three underwriting years.

Brokers expect strong competition at remote risk layers at the 1 January renewal.

He will be based in the Bermuda office and work to develop the underwriting associates.

Most of the ILS capital was attracted to the cat bond market.

Cat bond funds continue to draw interest as private ILS more challenged.

The headline figure of $7.15bn includes $2.91bn of DaVinci equity plus debt.

The Bermuda regulator is consulting on a refresh of its rules that will be in force as of 1 January 2025.

Growth was driven by strong returns and new investors entering the market.

Peter Shen started his insurance career at TigerRisk.

Quick-moving cat risk trading may become more prevalent in the ILS market.

The James River-Long Tail Re deal is the latest example of deal-specific investor capital.

Returns were down on 2023, which benefited from favourable Ian loss development.

The proportion of total fund assets invested in non-life ILS held steady at 0.6%.

Sidecar vehicles are being tailored to match investors’ objectives.

Everest losses ceded to Mt Logan grew by 63% to $26mn.

Allocators are waiting for 2024 to pan out, according to Hiscox CEO Aki Hussain.

Fee income at the Re & ILS division grew by 58% to $44.3mn in H1.

ILS investors’ stress over Gibson Re is unlikely to inhibit legacy ILS’s future.

The combined Twelve-Securis entity would be a top-five ILS firm currently.

Reinsurer-managers are building out asset management infrastructure as they expand.

The firm said the move would let it build a multi-vehicle capital management platform.

More than $1bn has entered the sidecar segment in 2024.

The 2024 winners were celebrated at The HAC in London on 27 June.

State National has been lined up to front for the vehicle, which would be a rare example of third-party capital in this space.

Reinsurers are much better placed to absorb cat losses; insurers are carrying more risk.

The Sussex Capital ILS platform managed $440mn at its 2019 peak.

The capital will be allocated to a pure cat bond strategy, sources have confirmed.

The former Neuberger Berman managing director confirmed the new role in a LinkedIn post.

The carrier also reported a $16mn satellite loss during the quarter.

Over Q1, the loss ratio improved by 34.6 points year on year to 43.7%.

The firm’s AuM was down 17% on $1.8bn as of 31 December.

The fund has a strong focus on cedant quality and transaction structures.

Aspen said reduced reinsurance appetite made it a good time to seek alternative capacity.

The reinsurer said it hopes to grow the size of the $13.75mn deal over time.

The value of White Mountains’ stake in the ILS manager grew last year despite the firm shrinking its holding.

The High Yield Fund’s AuM stood at $2.8bn as of 10 April.

The former Ledger director was joined by fellow ex-Ledger employees to “hit the ground running”.

Charles Craigs will oversee Ascot’s sidecar and other third-party capital vehicles.

The announcement confirms earlier reports from this publication.

Sources said the deal was roughly three times over-subscribed as cat becomes hot.

The carrier closed its Sussex Diversified Fund in October last year.

The carrier’s non-life combined ratio improved by 5 points to 81.6%.

Chris Parry said the denominator effect remains a suppressant on ILS inflows after a strong phase of returns.

The firm is focusing on developing specialty offerings.

Risk partnerships will now report direct to the board through the CFO.

The Cayman Islands entity raised $2.4mn last June.

Managers are hoping strong returns in 2023 will aid capital raising efforts.

Pockets of new capital will not shift pricing at mid-year.

Murphy and Simons confirmed the new roles on LinkedIn.

The Truist-owned cat MGA had reduced its line size to $50mn last year.

The firm’s assets under management dropped to $1.6bn, as a capital return more than offset new inflows.

The ILS executive had been with the broker’s Bermuda team two years.

The vehicle’s loss ratio improved 66 percentage points YoY.

The vehicle is 52% larger than it was at launch 3 years ago

Sponsors still secured terms that were favourable relative to traditional cover.

The ILS allocator has invested in the asset class over 17 years.

Ark had reinvested $130mn in the cat sidecar for 2024.

The reinsurer said retro pricing had ‘moved slightly in our favour’ at 1 January.

The carrier also set out detail on its alternative solutions offering. 

New business across geographies drives top-line growth of 191%.

The Bermudian said its third-party vehicles were “sufficiently capitalised”.

Fourth quarter inflows also included $111mn for its retro platform Upsilon

The Medici cat bond fund experienced the largest growth in AuM.

The depth of the retro market recovery will be an influential factor in the pace of the cat market slowdown from here.

Of the 18 top-tier ILS managers, 10 recorded growth, while eight were flat or down.

Phoenix Re renewal ‘shows commitment to doing Asia ILS, for Asia in Asia’, according to MS Amlin Asia Pacific CEO Will Ho.

The sidecars segment has been attracting inflows after returns hit a high note in 2023.

The sixth edition of the sidecar reflected alignment of interest with long-term partners, the reinsurer said.

Cat bonds and sidecars are well positioned for growth, while private ILS will benefit from further innovations to improve liquidity.

The head of the ILS international team at Gallagher Securities Europe expects ILS issuance in the region to grow following rises in the European Central Bank rate.

The independent manager’s post-Ian growth has helped it more than double from prior estimated assets under management.

The Class A notes were sized at $28.5mn and the Class B notes at $121.5mn.

The new fund generated 11.2% in profits for the period from 27 January to 31 October last year.

Of $17bn that entered the market in the 15 months to 31 December, 40% was channelled into ILS vehicles.

The firm’s flagship reinsurance strategy delivered its best performance in its 10-year history.

Projected 2024 ILS returns remain historically high, but signs of increased appetite for top-layer cat risk and top-end retro raise questions over how long this will last.

The renewal included $130mn from White Mountains, considerably less than the $205mn Ark’s parent kicked in for 2023.

Munich Re has renewed the first tranche of its Eden Re sidecar for 2024, listing $28.5mn of Class A notes on the Bermuda Stock Exchange, a roughly 62% increase on last year.

The year brought a degree of closure on the loss-hit years of 2017-2021, while the outlook remains changeable for ILS managers.

Slade was previously president at Markel’s ILS fund manager Lodgepine Capital.

The represents Golub Capital’s first insurance sidecar transaction.

The cost of maintaining a team to service institutional investors does not always weigh favourably versus bringing in ILS capital.

Swiss Re Alternative Capital Partners assets under management hit $3.3bn as of 30 September.

According to a LinkedIn post, the current head of corporate development, investments and treasury will return to BlackRock.

The second iteration of the Bermuda sidecar has brought in additional investors.

The first edition of the vehicle has generated fee income of $29mn to date.

Hannover Re said it was in discussions with retro partners about buying less in 2024.

The investment manager held its outlook at strongly overweight for cat bonds, retro and private ILS in Q4.

The sidecar’s loss ratio improved by 139 points to 35% in the latest quarter.

Axis set up a new casualty sidecar in the quarter.

The carrier returned $369mn of capital to third-party investors in Q3 from investors in the Upsilon and Vermeer vehicles.

The company’s on-risk Kilimanjaro Re cat bond volumes have been gradually shrinking in the past year.

A strong outlook for sidecar profits in 2023 is rebuilding investor confidence but one to three years of good performance will be needed to sustain it more fully.

Lloyd’s CFO Burkhard Keese, speaking at Guy Carpenter’s Baden-Baden Symposium, said there are $500mn-$1bn of London Bridge deals in the pipeline.

The Bermuda-based collateralised reinsurance platform Sussex Capital was set up in December 2017 and had more than $400mn of assets at its peak.

The sidecar has been launched alongside partner Stone Point Credit Adviser.

This is the first multi-year plan led by the new CEO.

Outside the cat bond segment, Aon said it was observing rising sidecar interest, putting volumes at $7.1bn from $6.4bn the prior year.

The industry’s ability to draw new capital will hinge on the outcome of the Atlantic hurricane season.

The AuM total hits $12.1bn when including Top Layer Re and RenRe’s own participation.

The Bermuda sidecar was established last year to support property cat underwriting in a hard market.

The carrier experienced three large claims in Q2 in the property and marine and energy lines of business.

The reinsurer opened its cat bond portfolio to third-party investors last summer.

The cat bond fund posted returns of around 10.75% for the first six months of Stone Ridge’s financial year.

R&Q launched Bermuda-based reinsurance sidecar Gibson Re with $300mn of capital in September 2021.

The aim was to provide proof of concept for the securitised tokens.

The new SPA will write cyber reinsurance initially and could progress to writing insurance.

Chuck Scherer will report to Jonathan Reiss, chairman of SRS Bermuda.

The current year performance marks an uplift compared to a tough 2022, in which Elementum delivered a loss to White Mountains of 4.6%.

Removing any competitor is a positive for ILS peers in a competitive time for fundraising, but it is not clear how much of a boost this will give RenRe.

Early private deals have provided far more stability in this year’s renewal than last.

Details of the placement are being closely guarded, but one source suggested the raise could be in the region of $1bn.

The manager has gained increments from existing investors and inflows from new ones.

Earlier this week, Munich Re doubled the target size of its Queen Street 2023 Re DAC cat bond to $200mn, after initially seeking to raise $100mn.

The firm has posted a combined ratio of 75.4% for 2022.

Remaining ILS staff will now report into the group’s CFO.

The reinsurer is now hoping to raise $200mn of Class A principal-at-risk variable-rate notes priced at 800bps.

The reinsurance sidecar was formed in Q4 to provide collateralised reinsurance capacity for Ark's global cat portfolio.

The reinsurer’s core management fee income was up by 50% year on year to $40.9mn.

The reinsurer is seeking indemnity per occurrence for named storms across the US, Washington DC and Puerto Rico.

RenaissanceRe won the Manager of the Year title, while Beazley’s cyber cat bond won the non-life transaction of the year.

In a discussion at Trading Risk’s London ILS 2023 conference, panellists compared the current cyber ILS market to the cat market in the 1990s.

At Trading Risk’s London ILS 2023 conference, the PRA’s head of division for London markets, Andrew Dyer, explained how the PRA is executing its plans to bolster the UK ILS market.

The New York-based executive had been one of the firm’s co-heads of ILS, leading on investor relations and sales.

The firm will focus on high-frequency, low-severity risks including personal and commercial auto, general liability, workers' compensation and professional lines.

The bond giant had around $770mn in ILS assets as of mid-2022.

There are enough drivers supporting the trend for cat bond segment growth that ILS managers are likely to be plugging this business heavily in the short term, even if it is less attractive in fee yield.

Cat bond pricing has fallen by about 12% since year-end but margins are still strong enough that the market could be set for meaningful growth, the broker forecast.

The company believes the program management and legacy businesses would work better as standalone operations.

The alternatives manager acquired retirement services firm Athene in January, ahead of its $2bn ADIP sidecar raise.

The reinsurance recoverables from Lorenz investors were up by 56% to $921mn in the 2022 year.

The securitised reinsurance tokens require a minimum investment of $20,000 in the US and $2,500 outside of the US.