International specialty insurer Chaucer has created a reinsurance sidecar to provide collateralised reinsurance capacity for its Syndicate 1084 global portfolio in 2018.
Newly formed Bermuda-based segregated account company Thopas Re will lead the transaction which includes $95 million of third-party investor capital.
Thopas Re has entered into an exclusive quota share agreement with Chaucer to reinsure some of the carriers’ U.S. and international property catastrophe portfolio, beginning January 1, 2018.
John Fowle, Chaucer Chief Executive Officer (CEO), said; “this is a key development in the evolution of our business, providing us with greater scope and flexibility to support the evolving needs of our clients.
“Thopas Re increases the options available to us for both accepting and managing risk, while also introducing new capital market partners to our strong underwriting capabilities and international reach.”
“The creation of a reinsurance sidecar provides Chaucer and The Hanover with another means of leveraging our strong underwriting capabilities, and is a first step in creating new relationships with capital market partners,” commented Jeffrey Farber, executive vice president and chief financial officer at The Hanover, owner of Chaucer plc.
Mayer Brown LLP and Appleby (Bermuda) acted as legal counsels; TigerRisk Capital Markets & Advisory acted as sole structuring and placement agent on the transaction.