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MS Amlin creates $60mn reinsurance sidecar

January 08, 2018

MS Amlin has launched a new Bermuda-domiciled special purpose reinsurer, Viribus Re, which will provide collateralised capacity support to Syndicate 2001’s global reinsurance portfolio in 2018.

The carrier said that the reinsurance sidecar has secured capital commitments in excess of $60mn from several third-party investors, with MS Amlin itself committing $5mn.

Viribus Re has entered into a quota share agreement with MS Amlin, under which it will reinsure a share of MS Amlin’s worldwide property-catastrophe excess-of-loss portfolio. The cover incepted on 1 January.

Global managing director of reinsurance at MS Amlin, James Few commented: "This is an important long-term strategic initiative for MS Amlin as we continue to seek ways to build capacity and relationships with capital market partners, whilst providing us with greater scope and flexibility to support the evolving needs of our clients.

“We are delighted to have secured funding for Viribus Re from a range of new partners whom we look forward to working with closely in the future."

MS Amlin follows in the footsteps of both Chaucer and Brit, who have also recently launched sidecars. Last month, Chaucer established a $95mn collateralised reinsurance sidecar called Thopas Re, while Brit announced the launch of Sussex Re, a collateralised reinsurance vehicle with an initial capacity of $100mn.

Aon Securities acted as sole structuring agent and placement agent for Viribus. Willkie Farr & Gallagher UK acted as deal legal counsel for the transaction.