Argo Group Establishes Harambee Re Sidecar
Bermuda-based Argo Group International Holdings, Ltd. has established of Harambee Re 2013-1 Ltd for the 2013 accident year. This is the first sidecar established by Argo Group.
Unlike other sidecars, which typically write either reinsurance or retrocession business, Harambee Re is the first sidecar transaction to support both a reinsurance and an insurance portfolio. Harambee Re provides capacity of approximately 5% of premium income for specific property portfolios that represent two of Argo Group’s core businesses: Argo Re, the Group’s reinsurance operation and Colony Specialty, Argo Group’s Excess and Surplus Lines segment.
Argo Group President and Chief Executive Officer Mark E. Watson III stated, “We are pleased to support our business growth objectives with this new funding vehicle. Harambee Re enables us to grow the size of two of our core businesses without adding materially to the Group’s exposure to the volatility associated with US earthquakes and hurricanes.”
The establishment of Harambee Re continues Argo Group’s utilization of a variety of mechanisms to efficiently capitalize on market opportunities and builds upon the company’s previous insurance-linked securities transactions, Loma Reinsurance 2011-1 and Loma Reinsurance 2011-2.
