Inver Re SAC set up in Bermuda as captive & collateralized vehicle for Ardonagh Group

A new Bermuda based Class 3 re/insurer and segregated accounts company has been set up by reinsurance broker Inver Re, a unit of the Ardonagh Group, with Inver Re (Bermuda) SAC Ltd. set to be used both as a captive vehicle and for collateralized reinsurance arrangements.

Inver Re (Bermuda) SAC Ltd. was registered in Bermuda by regulator the Bermuda Monetary Authority (BMA) on May 24th 2023 as a Class 3 insurance company and segregated accounts company.

The Class 3 company is one often used for group captive structures, but with the segregated accounts capabilities it could also be utilised to help Inver Re and Ardonagh Group clients transact reinsurance on a collateralized basis, with third-party investors or insurance-linked securities (ILS) funds.

Inver Re told us that the Inver Re (Bermuda) SAC Ltd., or Inver SAC for short, has been established as part of a newly created captive platform of the Ardonagh Group in Bermuda.

Recall that Ardonagh has insurance, captive and insurance-linked securities (ILS) management and servicing capabilities after its managing general agent Geo Underwriting acquired insurance manager Robus Group back in 2020.

Robus Group already utilises segregated cell structures in Guernsey for collateralized reinsurance and ILS transactions.

Inver SAC will enable Inver Re and the broader Ardonagh Group to offer Segregated Accounts, or captive cells, to its clients, with those cells also suited to collateralized transactions.

On the captive side, Inver SAC will offer captive cells for Ardonagh Group clients as a self-insurance component of their risk management programs.

William Wood, Senior Vice President of Price Forbes (Bermuda) Limited, told us, “Bermuda’s the oldest and largest captive market in the world. It’s a compelling location for any client exploring captive & cell solutions.

“We particularly see interest from North American but also from the rest of the world, so we’re pleased to further extend the suite of services we can offer to Inver Re and Price Forbes clients.”

The company sees this new structure in Bermuda as complementing its Robus activities, which offers captive solutions to clients from the domiciles of Guernsey & Gibraltar.

In addition, the company noted that Inver Re SAC’s Segregated Accounts can also be used for collateralized reinsurance transactions, in a similar manner to protected cell structures that Robus offers to clients in Guernsey or Gibraltar.