AXIS’ Alturas Re sidecar issues almost 3.63m of preferred shares

AXIS Capital’s collateralised reinsurance sidecar vehicle Alturas Re Ltd. has completed another issuance of preferred shares, as the specialist global re/insurer continues to expand options for third-party investors to participate in its underwriting returns through quota shares.

AXIS continues to expand its insurance-linked securities (ILS) activities, especially its use of private quota share reinsurance arrangements to let investors participate in its returns in recent years.

The Alturas Re reinsurance sidecar structure has come in for increasing use in that time, allowing AXIX to syndicate some of its risk to third-party investors in a securitised form.

The Alturas Re sidecar is one of the more novel structures in the reinsurance sidecar market, as it is dual-use in featuring cessions of tranches of property catastrophe reinsurance related risk, as well as tranches that provide investors with access to the returns of some of AXIS’ primary property insurance risks.

This latest issuance by Alturas Re is the sidecar’s second issuance of preferred shares, as the structure has shifted away from issuance of participating notes now in two issues.