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Alturas Re Ltd., a new fully collateralised reinsurance sidecar vehicle, has been launched and successfully capitalised to the tune of $55 million, which will benefit the sponsor of the vehicle which we’re told is Fidelis Insurance Holdings Limited.
Fidelis Insurance Holdings Limited, the specialty focused insurance and reinsurance firm launched by Richard Brindle, now has two collateralised reinsurance sidecars, having launched Socium Re Ltd. back in June of last year.
Alturas Re Ltd. was registered as a Bermuda based special purpose insurer in November and was marketed to investors towards the end of the year.
We’re told the Alturas Re sidecar features risks from the property catastrophe space, with the vehicle set to provide Fidelis with collateralised retrocessional capacity support for its re/insurance portfolio.
The risk ceded through to Alturas Re, by Fidelis, will likely have been through a quota share arrangement between the pair, with the portfolio collateralised through capital raised from third-party investors and a share contributed by Fidelis itself, as is typical with sidecar arrangements.
Alturas Re Ltd. issued a $55 million tranche of Series 2019-1 Class A Participating Notes, which are due March 10th 2023.
Alturas Re will now sit alongside other capacity providers that Fidelis works with, including its other third-party capitalised sidecar Socium Re.
Last September, Fidelis announced a restructure into four key pillars, one of which is Partnerships and focuses on the firms catastrophe quota shares, MGA and third-party vehicles. Hence further activities in tapping the capital markets as a source of retrocessional reinsurance had been expected from the company.
We expect a formal announcement of the launch of Alturas Re will be forthcoming from Fidelis and we’ll update you if any further information on the new reinsurance sidecar becomes available.
For more details on reinsurance sidecar investments and transactions view our list of collateralized reinsurance sidecars.