TransRe forms new sidecar on Bermuda

TransRe, the reinsurance arm of Transatlantic Holdings, has registered a fifth sidecar on Bermuda.

Pangaea Reinsurance IX is, in fact, the fifth fully-collateralised vehicle it has formed on the island and follows Pangaea Reinsurance IV, which was registered two years ago. The new vehicle was registered in April this year.

TransRe uses its sidecars to allow third-party investors to share in its underwriting with each being set up using a different risk profile; it earns a fee for managing the money.

This latest sidecar indicates that investor appetite for certain types of reinsurance risks remains strong, especially where there is a long-term relationship in place with a reinsurer.