Ark renews Outrigger Re sidecar for 2025 at slightly smaller $230m

Ark Insurance Holdings Limited, a property and casualty insurance and reinsurance subsidiary of the White Mountains Insurance Group, Ltd., has successfully sponsored a renewal of its collateralized reinsurance sidecar Outrigger Re Ltd. for the 2025 calendar year, but at a slightly smaller size than seen in 2024.

Back in 2023, White Mountains became the the lead investor in the first vintage of subsidiary Ark Insurance Holdings’ $250 million collateralized reinsurance sidecar Outrigger Re Ltd.

The Outrigger Re sidecar was then renewed for 2024, at a similar size.

For 2025, it seems Ark and White Mountains may be looking to retain more of the economics of the property catastrophe reinsurance business the Outrigger Re sidecar shares in, with a slightly smaller overall size but a larger share of the capital funding the sidecar coming from the parent company this year.

At January 1st 2024, White Mountains contributed $130 million of capital towards the $250 million funding of the Outrigger Re sidecar.

Now, for 2025, with the Outrigger Re sidecar only sized at $230 million for the coming year, White Mountains has itself provided $150 million of that.

All of which suggests, with the slightly smaller sidecar size Ark will retain more of the economics of its own catastrophe reinsurance underwriting, while a greater proportion of the sidecar economics will flow to the benefit of its parent, White Mountains.

Ark has renewed its Outrigger Re collateralized reinsurance sidecar for business incepted during calendar year 2025, on similar terms to those in effect for calendar year 2024.

Outrigger Re has entered into a quota share with Ark, to provide collateralized reinsurance protection on a portion of Ark Bermuda’s global property catastrophe portfolio beginning January 1st.

Outrigger Re received $230 million of total investor capital for January 1st, which includes the $150 million contribution from White Mountains, the remainder provided by continuing third-party investors.

With the company saying these are “continuing” investors, it seems likely that one of the third-party investors that renewed its stake in the vehicle for 2025 will have been the Enstar owned reinsurance company Cavello Bay, which invested in the sidecar a year ago.

White Mountains has been generating income from its stake in the Outrigger Re sidecar each quarter, although this was dented slightly in Q3 2024 by catastrophe loss activity.

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