White Mountains funds reinsurance sidecar for unit Ark

Bermuda-based  White Mountains Insurance Group will pony up $205 million to float a reinsurance sidecar for the property cat portfolio of its P&C re/insurance unit Ark, which also captured another $45 million to fund the deal.

The new SPV, Outrigger Re, will take $205 million from White Mountains and $45 million from third-party investors including Aquiline Capital Partners and a subsidiary of Enstar Group.

The new SPV has a quota share deal with Ark to provide reinsurance protection on a portion of Ark Bermuda's global property catastrophe portfolio beginning on January 1, 2023.

White Mountains CEO Manning Rountree commented:  "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."

Ark CEO Ian Beaton 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 acted as exclusive structuring and placement agent on the transaction.

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