CCR Re’s 157 Re sidecar returns with 40%+ higher capital in ‘extremely tight’ market

French government-backed reinsurer  CCR Re has renewed its landmark reinsurance sidecar 157 Re 23 — for the fifth consecutive year — with over 40% higher capital than seen in 2022. The renewal comes in what it describes as an “extremely tight retrocession market” that has seen the withdrawal of many key players.

The renewal of the sidecar follows an investment from Boussard & Gavaudan Investment Management (BGIM), which has increased CCR Re’s property cat risks underwriting capacity on a worldwide basis for the third consecutive year, as well as the arrival of a new investor to support 157 Re’s growth.

The reinsurer succeeded in increasing the capital raised by more than 40% compared to 2022, despite the withdrawal of numerous players from the retrocession market amid extremely challenging conditions.

The sidecar vehicle was first launched in March 2019. CCR Re stated that the successful renewal is proof of the increasing investors’ interest in its “extremely attractive” property cat portfolio. The reinsurer said it is further developing a strong relationship with ILS investors.

At the initiative of all stakeholders, 157 Re innovates with a Responsible Investment approach by investing all the sidecar assets in bonds issued by the European Bank for Reconstruction and Development (EBRD). This is the first time that a sidecar uses EBRD bonds. 157 Re thus aims to “progressively fulfil the largest possible number of ESG criteria.”

For its fifth sidecar vintage 157 Re 23, CCR Re leveraged the expertise of structuring and placement agent Gallagher Securities (Willis Re Securities), alongside France Titrisation as management company, BNP Paribas Securities Services as custodian bank, and Linklaters as transaction counsel.

Bertrand Labilloy, CCR Re chairman and chief executive officer (CEO), said: “The success of this issue confirms our Property Cat underwriting policy and strengthens our strategy of long-term partnerships with financial investors.”

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