Ryan Specialty launches $400M reinsurance sidecar

Ryan Specialty has set up a new collateralized reinsurance vehicle, Ryan Alternative Capital Re (RAC Re), to expand capacity for its underwriting arm, Ryan Specialty Underwriting Managers (RSUM). Backed by $400 million in commitments from Flexpoint Ford and Sixth Street, RAC Re is expected to provide around $900 million in multi-year premium capacity.

The deal was structured with support from AXIS Capital through its Lloyd’s syndicate 1686, making RAC Re a multi-year, multi-class P&C sidecar covering both cat and non-cat risks. Deutsche Bank acted as placement agent, while Sidley Austin, Conyers, and Mayer Brown provided legal advice.

“We believe this sidecar’s unique scope makes it the first of its kind in the (re)insurance marketplace. 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 vehicle marks a significant opportunity for RSUM to accelerate solution delivery to the industry and rapidly respond to future market dislocation. 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. AXIS has been a committed ally to the thought leadership and innovation that brought this transaction to life. Further, we appreciate Lloyd’s of London’s constructive support of AXIS, the transaction structure, and welcoming our entire syndicated portfolio to the London market.” – Miles Wuller, CEO of RSUM.