Lancashire launches new sidecar

Insurance group Lancashire Holdings is to launch a fully collateralised Bermuda incorporated special purpose insurer, Saltire Re 1.

Insurance group Lancashire Holdings is to launch a fully collateralised Bermuda incorporated special purpose insurer, Saltire Re 1.

The special purpose insurer, called a reinsurance sidecar in the insurance trade, will have capacity of up to $250m and the share capital will be owned by a syndicate of investors. Lancashire itself will invest some $33m in Saltire Re I.

Saltire Re I will underwrite a combined exposure ultimate net loss aggregate reinsurance product for the January 2013 reinsurance renewal season.

Lancashire has also launched Saltire Management Limited, which will provide underwriting services to Saltire Re I. Saltire Management is a wholly-owned subsidiary of Lancashire.

"Following the successful launch of the Accordion sidecar in 2011, the creation of the Saltire vehicles represents a further development of Lancashire's strategy to build partnerships with capital market participants. It affords the investors in Saltire Re I access to Lancashire's underwriting expertise, and allows Lancashire the ability to generate fee income," said Richard Brindle, the Group Chief Executive Officer of Lancashire.

"We have listened to our clients and brokers and believe that there will be an appetite for the Saltire Re I product," Brindle added.

JH

Recommended

Share tips of the week - 12 August
Share tips

Share tips of the week - 12 August

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
12 Aug 2022
Britain’s ten most-hated shares – w/e 9 August
Stocks and shares

Britain’s ten most-hated shares – w/e 9 August

Rupert Hargreaves looks at Britain's ten most-hated shares, and what short-sellers are looking at now.
10 Aug 2022
Aviva: One for income investors to tuck away
Share tips

Aviva: One for income investors to tuck away

Insurance giant Aviva is one of the highest yielding stocks in the FTSE 100 – and it’s cheap, too, making it a tempting target for income investors. R…
10 Aug 2022
Director dealings w/e 5 August: what company insiders are buying and selling
Stocks and shares

Director dealings w/e 5 August: what company insiders are buying and selling

Directors’ share dealings can often give investors an insight into the sentiment of company insiders. Here are some of the biggest deals by company di…
9 Aug 2022

Most Popular

UK House Prices Set To Fall? It’s Not So Simple
House prices

UK House Prices Set To Fall? It’s Not So Simple

Figures suggest UK house prices are starting to slide, but we shouldn’t take these numbers at face value, explains Rupert Hargreaves.
11 Aug 2022
Are UK house prices finally heading for a crash?
House prices

Are UK house prices finally heading for a crash?

The latest house price figures show a fall of 0.1% in July. With interest rates rising, inflation hitting double figures and a recession on the cards,…
5 Aug 2022
Three solar stocks to invest in
Renewables

Three solar stocks to invest in

This week, professional investor Nicholas Mersch of the HANetfS&P Global Clean Energy Select HANzero UCITS ETF tells us three solar stocks to invest i…
12 Aug 2022