Ark Insurance Holdings Limited, specialty property and casualty re/insurance subsidiary of White Mountains Insurance Group Ltd., has successfully sponsored a $250 million collateralized reinsurance sidecar, Outrigger Re Ltd.
According to the announcement, the Outrigger Re sidecar has been formed to provide collateralized reinsurance capacity for Ark’s global property catastrophe portfolio.
Manning Rountree, Chief Executive Officer of White Mountains, said, “We are pleased to launch Outrigger Re, deploying capital into the hard market for property catastrophe insurance and in support of the exceptional underwriting team at Ark.”
The newly-formed Bermuda was registered as a special purpose insurer (SPI) and segregated accounts company. It has entered into a quota share agreement with the re/insurer, which will provide reinsurance protection on a portion of Ark Bermuda’s global property catastrophe reinsurance portfolio, from January 1, 2023.
A total of $250 million investor capital has been secured, with $205 million coming from White Mountains itself . Additional third-party investors include Aquiline Capital Partners and a subsidiary of Enstar Group Limited.
Ian Beaton, Chief Executive Officer of Ark, said, “This transaction represents an important source of strategic underwriting capacity to support our core clients at a dynamic time in the reinsurance cycle.”
TigerRisk Capital Markets & Advisory was the structuring and placement agent for this new Ark sidecar transaction, while Sidley Austin LLP and Conyers Dill & Pearman Ltd. provided legal counsel to the parties involved.
