Sidecars

Despite reduced capacity, ILS market players have been busy redeveloping their offerings.

The firm expects AuM “well above” that level in early 2021 despite upcoming redemptions, after growing $600mn since July.

Occurrence retro rates are among the segments where rate pressure is abating, although the outlook remains somewhat opaque in a late renewal.

The deal took Alturas transactions to $115mn for the year to date as syndicated sidecars are expected to continue shrinking.

The carrier’s long-standing client Alfa has become an equity investor.

Cedants and reinsurers perform a "slow dance" around pandemic losses, with claims negotiations deferred beyond renewal.

A more diverse investor base is supplanting continued cutbacks from some ILS players, although Stone Ridge's participations are holding more stable than in prior years.

The carrier would consider a variety of tactics to manage third-party capital, the CEO said.

If the fundraise closes, the business will operate as a “permanent capital” monoline retrocessionaire.

The carrier joins peers such as Hamilton Re in raising fresh funds to attack the tight retro market.

By setting up an asset manager, the reinsurer is competing with ILS firms on their turf.

The company has expanded its sidecar in recent years but this will allow it to tap into a different investor base.