Ryan Specialty launches $400 million reinsurance vehicle with AXIS

Ryan Specialty (NYSE: RYAN) announced the formation of Ryan Alternative Capital Re, Ltd., a collateralized reinsurance vehicle that raised approximately $400 million in committed capital from funds managed by Flexpoint Ford, LLC and Sixth Street.

The sidecar will provide reinsurance capital to Ryan Specialty Underwriting Managers' delegated authority property and casualty insurance business. RAC Re is expected to provide $900 million in multi-year premium capacity through a strategic trading relationship with AXIS Capital (NYSE: AXS) via its Lloyd's of London syndicate 1686.

"We believe this sidecar's unique scope makes it the first of its kind in the (re)insurance marketplace," said Miles Wuller, CEO of RSUM. "RAC Re is a multi-year, multi-class P&C vehicle that provides capacity for specialty cat and non-cat property and casualty risks across our diverse, largely non-correlated portfolio of MGAs."

The vehicle will operate on a risk-attaching basis over multiple years to support potential growth of RSUM's delegated platform. Daniel Draper, Group Chief Underwriting Officer of AXIS, stated the collaboration advances the company's specialty leadership while expanding reach into targeted markets.

Deutsche Bank Securities served as the sole structuring and placement agent for the transaction. Sidley Austin LLP and Conyers, Dill and Pearman provided legal counsel to Ryan Specialty, while Mayer Brown LLP advised Flexpoint and Sixth Street.

Ryan Specialty, founded in 2010, provides specialty insurance products and solutions for brokers, agents and carriers through distribution, underwriting, product development, administration and risk management services.

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