Chaucer hails first sidecar as it seeks greater flexibility
Speciality insurer Chaucer has taken its first steps into the world of third party capital by forming its first reinsurance sidecar, formed to provide collateralized capacity for Chaucer Syndicate 1084’s global reinsurance portfolio in 2018.
The company’s CEO said the move will give it greater flexibility to service the evolving needs of its clients.
Bermuda-based Thopas Re, a newly formed segregated account company, will lead the transaction, which includes $95m of third-party investor capital.
Thopas Re has entered into an exclusive quota share agreement with Chaucer to reinsure a share of Chaucer’s US and international property catastrophe portfolio, beginning January 1, 2018.
Sir Thopas is one of the Canterbury Tales, written by the firm’s namesake Geoffrey Chaucer and published in 1387.
John Fowle, Chaucer 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.”
TigerRisk Capital Markets & Advisory acted as sole structuring and placement agent on the transaction. Mayer Brown and Appleby (Bermuda) acted as legal counsels.
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