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.
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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.
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