White Mountains subsidiary forms $250M reinsurance sidecar

White Mountains Insurance Group Ltd. on Wednesday said its specialty property and casualty reinsurance and insurance subsidiary Ark Insurance Holdings Ltd. has formed Outrigger Re Ltd., a $250 million reinsurance sidecar to provide collateralized reinsurance capacity.

Outrigger Re Ltd., a newly formed Bermuda special purpose insurer and segregated accounts company, has entered into a quota share with Ark to provide reinsurance protection on a portion of Ark Bermuda’s global property catastrophe portfolio beginning on Jan. 1, 2023, a statement said.  

The bulk of the capital, $205 million, came from White Mountains and the balance from third-party investors including Aquiline Capital Partners and a subsidiary of Enstar Group Ltd., according to the statement.

TigerRisk Capital Markets & Advisory acted as exclusive structuring and placement agent on the transaction while Sidley Austin LLP and Conyers Dill & Pearman Ltd. provided legal counsel, the statement said.

White Mountains is a Bermuda-domiciled financial services holding company that owns 72% of Ark on a basic shares outstanding basis, according to its statement.