Ryan Specialty forms reinsurance sidecar

Specialty insurer Ryan Specialty announced on Friday the formation of Ryan Alternative Capital Re, a new collateralized reinsurance vehicle.

Ryan Alternative Capital Re will provide additional capacity to the syndicated delegated authority property/casualty insurance business of Ryan Specialty Underwriting Managers, the delegated authority underwriting division within Ryan Specialty.

The new sidecar will provide reinsurance capital on a risk-attaching basis over a multiyear period to support RSUM’s delegated platform.

Launched through a strategic trading relationship with global specialty insurer and reinsurer Axis Capital, RAC Re will provide RSUM with a projected $900 million in multiyear premium capacity.

Axis will support the transaction via its Lloyd’s of London syndicate 1686.

RAC Re has raised approximately $400 million in committed capital from funds managed by Flexpoint Ford and Sixth Street.