AmRisc raises $325m of capacity for Trouvaille Re sidecar with Stone Point support
AmRisc, LLC, a coastal commercial property insurance specialist subsidiary of Truist Insurance Holdings, has raised $325 million of capacity for a collateralized reinsurance sidecar named Trouvaille Re Ltd., with alternative investment firm Stone Point in support.
Trouvaille Re Ltd. is a Bermuda based restricted special purpose insurer (SPI) that has been formed for the purposes of enabling AmRisc to crowd in third-party capital to support its coastal excess and surplus lines commercial property insurance portfolio.
The Trouvaille Re Ltd. sidecar vehicle will provide collateralized reinsurance capacity for AmRisc beginning on April 1st 2024.
In total, $325 million of new underwriting capital was raised via this Trouvaille Re reinsurance sidecar launch for AmRisc’s E&S portfolio.
The capital was raised by a combination of collateralized capital sourced from a diversified group of investors and capacity provided by the transaction’s fronting carrier, MS Transverse.
AmRisc writes over $2 billion in E&S gross premiums annually on behalf of its capacity providers, as well as more than $600 million of admitted premiums.
That panel of capacity providers has now grown to include a significant participation from capital markets investors, thanks to this sidecar structure.
As an MGA, AmRisc is not using the sidecar as pure protection, but rather as a way to access diversified capital to support its underwriting expansion, so leveraging the appetite of capital market investors to help it grow its stature in the marketplace.
“We are excited to diversify our capacity panel with new partners, allowing us to continue to serve the coastal commercial property E&S market that we have supported for more than 20 years,” explained Brian Reid, CEO, AmRisc.
“We expect that these new partnerships will continue into the long-term. Investors were particularly interested in AmRisc given our demonstrated track record and discipline in hard market conditions,” added Laura Beckmann, AmRisc’s President and Chief Operating Officer.
“This new partnership is just another demonstration of our commitment to underwriting expertise and our ability to attract alternative capital,” Bill Goldstein, CEO, TIH Underwriting said. “Our core focus is to expand the breadth and quality of our programs and leverage creative solutions to meet the changing needs of our clients,” Goldstein said.
“Trouvaille Re Ltd. is seen as a significant success for AmRisc, further diversifying its capacity panel and enabling AmRisc to more effectively serve clients in its targeted markets,” further explained Ben Rubin, Managing Director at Stone Point.
You may recall that Stone Point bought into Truist Insurance Holdings recently.
Stone Point is also very familiar with investing into quota share sidecar structures, having backed and assisted with the launch of a number over the years.
Find details of numerous reinsurance sidecar investments and transactions in our directory of collateralized reinsurance sidecars transactions.
