Business
Side car facility launch
Side car facility launch.
About this update from Lancashire Holdings Limited
[{"type":"text","content":"\n \nRNS Number : 9672G Lancashire Holdings Limited 20 May 2011 \n \n\nLANCASHIRE HOLDINGS LIMITED\n20 May 2011\nHamilton, Bermuda\n \nLancashire Holdings Limited launches US$250 million \"Accordion\" collateralised property retrocession side car facility \n \nLancashire Holdings Limited (\"Lancashire\") has today announced that it will launch Accordion Reinsurance Limited (\"Accordion\"), a fully collateralised side car quota share reinsurance arrangement with an innovative capital draw down feature. Accordion will be flexibly capitalised for up to US$250 million, and will act as a quota share reinsurer of Lancashire Insurance Company Limited (\"LICL\") on its worldwide property retrocession business. \n \nRichard Brindle the Group CEO of Lancashire said:\n\n\"This is another exciting chapter in the Lancashire story. This demonstrates our ability to act nimbly when excellent underwriting opportunities arise, and to manage our capital flexibly through the underwriting cycle. \n \nThe accumulation of International property catastrophe losses during 2010 and 2011, which in many cases were at or above companies' disclosed RDS scenarios in the affected territories and elsewhere, combined with the expected impact of the new RMS version 11, have changed the perception of catastrophe risk. They have combined to reduce the amount of available reinsurance capacity and increase the demand for property retrocessional coverage. Lancashire is well positioned to take advantage of these developing underwriting opportunities, particularly in the event of an active US storm season. We have listened to our clients, brokers and investors and have moved quickly to establish the Accordion facility.\" \n \nElaine Whelan the Chief Financial Officer of Lancashire said:\n \n\"The capital draw down facility which we have developed for the Accordion facility is intended to ensure that capital is available as and when underwriting opportunities arise, and is only deployed once attractive business materialises. This is classic Lancashire, and fits perfectly with our capital management philosophy. We believe underwriting opportunities should always be the driver of capital needs, and the developing retrocession market fits well with this adaptable side car product. The draw down feature will improve the re...