Lancashire launches new sidecar

published 6 November 2012

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.

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"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.

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