ACE forms its own sidecar

ACE has established a new $95 million sidecar, Altair Re, which will provide collateralised capacity for its global reinsurance business.

ACE indicated that the additional capacity would be used to “broadly support ACE Tempest Re’s global property catastrophe reinsurance portfolio”. The move echoes similar moves made by a number of Bermuda players in recent months, with sidecars offering bolt-on capacity to traditional rated paper.

Last year Bermuda players added $1.9 billion of sidecar capacity into the market and there are expectations—and evidence already this year—that this trend will continue in 2013.

“Altair Re gives us additional capacity to meet the diversified property catastrophe needs of our insurance and reinsurance company clients,” said Jacques Bonneau, chairman of ACE Tempest Re Group.

“Capital markets investors will benefit from ACE Tempest Re’s proven track record of conservative underwriting and consistent profitability, while the additional capital will enable us to take advantage of opportunities we see in the global property catastrophe market.”