Argo is the latest re/insurer to enter the sidecar space, announcing on Monday the establishment of the group’s first sidecar, Harambee Re 2013-1. Argo is hoping that the sidecar will differentiate itself by offering both insurance and reinsurance capacity, rather than simply the reinsurance and retro capacity that is the norm with such vehicles.
Harambee Re will provide capacity in the order of 5 percent on property portfolios in the company’s Argo reinsurance arm and its excess and specialty business, Colony Specialty.
Commenting on the deal, Argo Group president and CEO, Mark Watson said:“we are pleased to support our business growth objectives with this new funding vehicle. Harambee Re enables us to grow the size of two of our core businesses without adding materially to the Group’s exposure to the volatility associated with US earthquakes and hurricanes.” The move will complement Argo’s existing involvement in the alternative capital space, through its ILS fund, Loma Re.
Argo, sidecar, Harambee Re, reinsurance