French reinsurance firm CCR Re has introduced a sixth renewal of its long-standing collateralised and securitised reinsurance sidecar automobile, 157 Re, gifting away little intimately once more, however saying that the retrocession market was seen as persevering with to be “tight” this yr.
For CCR Re, the 157 Re sidecar has turn into a important element of its retrocessional reinsurance preparations, permitting the reinsurer to align itself with third-party traders and profit from their urge for food to share in its underwriting returns.
The 2024 classic of 157 Re, or 157 Re 24 because the reinsurer has termed it for this yr, is the sixth renewal of the reinsurance sidecar for CCR Re.
Particulars of all of the 157 Re sidecar points could be present in our listing of reinsurance sidecar transactions.
Recall that 157 Re stays the primary and solely insurance-linked securities (ILS) automobile to be ruled beneath French legislation.
CCR Re first established the 157 Re sidecar association for the 2019 underwriting yr, structuring it as a mutual securitization fund, often known as a “fonds commun de titrisation”, a automobile typically used for securitised preparations in France.
The 157 Re reinsurance sidecar has since been renewed every January, rising in significance for CCR Re in recent times.
For 2022, CCR Re mentioned that it had grown the 157 Re sidecar’s dimension by 22% and added a brand new investor.
Then, a yr in the past for 2023, CCR Re mentioned it had grown its reinsurance sidecar once more, by greater than 40%, whereas including one other new investor.
For 2024, noting further has been disclosed, with CCR Re merely saying that it took “full benefit of its 157 Re platform to consolidate its progress trajectory with the problem of its sixth sidecar classic: 157 Re 24.”
Saying that entry to the insurance-linked securities (ILS) market is “an vital a part of CCR Re’s retrocession technique,” the reinsurer mentioned that its 157 Re sidecar renewal “advantages from the renewed confidence of these concerned within the earlier classic.”
As soon as once more, investor Boussard & Gavaudan Funding Administration LLP has backed CCR Re’s 157 Re sidecar once more for 2024, now having been concerned in all six vintages of the construction.
“This sixth era is testimony of our dedication to an alignment of curiosity with these of our traders as a part of a long-term partnership,” Mathieu Halm, Board Secretary and Chief Retrocession & Different Capital Officer commented.
Lately, Laurent Montador, Deputy Chief Govt Officer (CEO) of CCR Re instructed us in an interview that the 157 Re sidecar automobile has turn into an vital a part of its property disaster play, and additional enlargement of the sidecar and its capabilities is predicted sooner or later.
Whereas there’s no point out of progress for 2024, it seems CCR Re has achieved a comparatively secure renewal for its flagship reinsurance sidecar automobile, persevering with to position nice significance on this partnership with third-party traders.
Gallagher Securities acted because the structuring and placement agent for the 157 Re sidecar renewal for 2024.
France Titrisation has acted because the administration firm, BNP Paribas Securities because the custodian financial institution and authorized recommendation was offered by Linklaters, CCR Re mentioned.
For particulars of many reinsurance sidecar investments and transactions over the historical past of the ILS market, view our complete listing of collateralized reinsurance sidecars transactions.