Reinsurers seeking sidecars to ride out next big storm

Thursday, September 11th, 2008 Catastrophe Property

As Hurricane Ike takes aim at the Gulf of Mexico, triggering memories of 2005’s devastating storms, reinsurers see temporary underwriting vehicles as the solution to their capital needs in the event of "the Big One" -- a disaster costing them tens of billions of dollars. These temporary vehicles, known as sidecars, are set up by a reinsurance company using funds from outside investors, who agree to tie up their funds for a period of two or three years.

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http://www.insurancejournal.com/news/national/2008/09/10/93541.htm

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