Arch Capital’s Voussoir Re sidecar lists 2024-9 preferred shares
Collateralized reinsurance sidecar and special purpose insurance (SPI) vehicle Voussoir Re Ltd., which counts Arch Capital Group as its sponsor, has issued and listed a new series of 2024-9 preferred shares, the first seen to be listed by the structure since 2022.
For Bermuda headquartered insurance and reinsurance specialist Arch Capital, the Voussoir Re sidecar vehicle has been one of its main third-party capital structures since launching it in 2019.
As a sidecar structure, Voussoir Re enables Arch Capital to welcome third-party capital investors into its business as risk capital partners on an aligned basis.
We understand that Voussoir Re has been used for both quota share and excess of loss arrangements backed by third-party capital providers.
Arch Capital registered Voussoir Re Ltd. in Bermuda in 2019, since which the special purpose insurer (SPI) and segregated accounts vehicle has been used both as its main quota share sidecar structure and for collateralised reinsurance arrangements and issuance of insurance-linked notes to investors.
In 2019, we reported on the first $74 million issuance of notes from Voussoir Re Ltd., which was a quota share based reinsurance sidecar style arrangement for Arch Capital.
Arch returned in 2020 with a second, $76.5 million issuance from its Voussoir Re sidecar vehicle, featuring a $20 million Class A tranche of Series 2020-1 notes and a $56.5 million Class B tranche, again a sidecar like quota share reinsurance arrangement.
For 2021, Arch sponsored a third transaction, which represented a nearly $70 million renewal for the Voussoir Re sidecar structure.
Then, in late 2021, we reported on the first preferred shares issuance to come to light from Voussoir Re, with the previous issuances having featured participating notes.
In March 2022, Arch Capital used Voussoir Re again, with two more series of preferred shares issued, after which the last issuance we saw listed was a Series 2022-9 preferred shares issuance in July 2022.
Since then, Voussoir Re has not listed any more series of shares on the Bermuda Stock Exchange (BSX), until now.
Arch Capital’s reinsurance sidecar SPI Voussoir Re has now issued another series of preferred shares, which will be used as the investment structure to enable third-party capital providers to back reinsurance business.
In this latest case, Voussoir Re Ltd. has issued 893 Series 2024-9 non-voting and redeemable preferred shares, using a segregated account Voussoir Re 2024-9, with each of the shares having a nominal par value of $0.01.
This series of preferred shares has been privately placed with qualified institutional investors.
It’s worth noting that, in the past, we’ve seen Voussoir Re notes featured in catastrophe bond fund portfolios, so it is possible that’s where this latest issuance of listed notes ends up.
As ever with this kind of private ILS transaction, details are scarce, so we can’t be sure of the exact structure and underlying risks associated with this latest Voussoir Re issuance from Arch’s vehicle.
Find details of numerous reinsurance sidecar investments and transactions in our directory of collateralized reinsurance sidecars transactions.
