Sidecars

Swiss Re’s Sector Re includes aviation coverage, while some direct ILS exposures exist in marine retro where firms like ILS Capital and Lancashire play.

The AI-driven platform has been building out its team this year.

The reinsurer said the third-party platform, which reached $2.2bn at the start of this year, provided capital relief and supported nat-cat capacity.

Fontana investors will face a short lock-up period in the sidecar’s ramp-up phase, but thereafter there will be some “embedded liquidity.”

The Gallagher Re managing director of EMEA North and East said buyers need to be able to explain their stance on handling inflation, going beyond price to include action on their own underlying limits and deductibles, to get reinsurers on board.

ILS funds were showing pockets of positivity as market dynamics shift.

This is down from the one-in-400-year benchmark used previously.

The purchaser is known for having a very low cession ratio, although it said it would leave Alleghany to operate independently.

Even though underlying ILS market conditions are improving, getting a hearing from investors could become harder.

It noted that its aviation and marine books are covered by retro although its exposure is “not very material”.

The reinsurer exceeded its large-loss budget by $166mn.

The ceded premiums were up more than sixfold after it set up a new sidecar.