Liberty Mutual in $100m Limestone Re 2020-2 reinsurance sidecar issuance

U.S. primary insurer and global re/insurer Liberty Mutual has successfully closed on another collateralised reinsurance sidecar placement for 2020, with a $100 million of notes issued by its Limestone Re Ltd. sidecar.

Liberty Mutual has been accessing the appetite of insurance-linked securities (ILS) funds and capital market investors to support its growing Limestone Re Ltd. collateralised sidecar series, as a way to source diversified reinsurance capital and also share its underwritten risks with investors.

The re/insurer has returned regularly each year with transactions since launching Limestone Re back at the end of 2016 with a first $160 million deal that ceded a mix of U.S. property catastrophe, U.S. homeowners and London Market specialty insurance business to ILS investors.

As Liberty Mutual has sought to bring increasing capital from insurance-linked securities (ILS) investors into its structure, as reinsurance or loss bearing capacity, but also as growth capacity for catastrophe exposed risks as well, the company has returned with Limestone Re sidecar transactions both at the January and mid-year renewals each year.