Lancashire Holdings Launches New Side Car
Bermuda-based re/insurer Lancashire Holdings Ltd. today [May 20] said it will launch Accordion Reinsurance Ltd., a fully collateralised side car quota share reinsurance arrangement with an innovative capital draw down feature.
Accordion will be flexibly capitalised for up to $250 million, and will act as a quota share reinsurer of Lancashire Insurance Co. Ltd. on its worldwide property retrocession business.
All contracts reinsured by Accordion will be collateralised for the benefit of Lancashire Insurance Co. to the full extent of Accordion’s potential policy liability.
Subject to authorisation by the Bermuda Monetary Authority, Accordion will be a special purpose insurer. Accordion’s holding company is owned by a small group of capital providers. Lancashire Insurance Co. will invest up to $50 million in the structure.
Lancashire operates in Bermuda, London and Dubai.
