White Mountains Insurance Group Ltd. said on Wednesday that its specialty property and casualty insurance and insurance subsidiary Ark Insurance Holdings Ltd. has formed Outrigger Re Ltd., a $250 million reinsurance sidecar to provide reinsurance capacity.
Outrigger Re Ltd., a newly formed Bermuda special purpose insurer and segregated account company, has entered into a quota share with Ark to provide reinsurance coverage for a portion of Ark Bermuda’s global property catastrophe portfolio beginning January 1, 2023, it said in a statement.
The bulk of the capital, $205 million, came from White Mountains and the rest from third-party investors including Aquiline Capital Partners and an affiliate of Enstar Group Ltd., according to the statement.
TigerRisk Capital Markets & Advisory acted as exclusive structuring and placement agent on the transaction while Sidley Austin LLP and Conyers Dill & Pearman Ltd. provided legal advice, the statement said.
White Mountains is a Bermuda-domiciled financial services holding company that owns 72% of Ark on an outstanding basis, according to its statement.