International specialty insurer Ryan Specialty announced the formation of a new collateralized reinsurance vehicle called Ryan Alternative Capital Re, Ltd. (RAC Re)
RAC Re will deliver additional capacity to Ryan Specialty Underwriting Managers’ portfolio of syndicated delegated authority P/C insurance business. RSUM is the delegated authority underwriting division within Ryan Specialty.
“We believe this sidecar’s unique scope makes it the first of its kind in the reinsurance marketplace,” said Miles Wuller, CEO of RSUM, in a statement. “RAC Re is a multi-year, multi-class P/C vehicle that provides capacity for specialty cat and non-cat property and casualty risks across our diverse, largely non-correlated portfolio of MGAs.”
This flagship sidecar will provide reinsurance capital on a risk-attaching basis over a multi-year period to further support the potential growth of RSUM’s delegated platform. RAC Re raised approximately $400 million in committed capital from funds managed by Flexpoint Ford and Sixth Street.
RAC Re will provide RSUM with an anticipated $900 million in multi-year premium capacity and has been launched through a trading relationship with global specialty reinsurer Axis Capital. Axis will support the transaction via its Lloyd’s of London syndicate 1686.
“This vehicle marks a significant opportunity for RSUM to accelerate solution delivery to the industry and rapidly respond to future market dislocation,” Wuller added. “We are
excited to launch this opportunity in collaboration with Axis and with the support of Flexpoint and Sixth Street, both exceptional insurance investors with long track records in the specialty ecosystem.”
Daniel Draper, group chief underwriting officer of Axis, said the trading relationship expands the company’s reach into targeted markets.
“We worked closely with Ryan Specialty to carefully select an attractive portfolio of specialty MGAs that fit our risk-reward parameters and align with our delegated underwriting strategy and partnership criteria,” he continued. “This relationship reflects the progress Axis had made in expanding our ability to drive profitable growth with our trading partners, delivered responsibly and sustainably, with established controls to ensure underwriting discipline and careful risk selection.”