Guy Carpenter, global risk and reinsurance expert and part of Marsh plc, has announced the establishment of a global Sidecar Center of Excellence (COE), led by Ed Hochberg.
COE aims to provide clients with dedicated resources and holistic solutions to better manage their capital, volatility and growth.
The company noted that this strategic move further positions Guy Carpenter’s Capital Solutions as a market leader in providing customized reinsurance structures.
Hochberg will lead the COE in addition to his current role as head of global risk solutions.
The launch comes as alternative reinsurance capital continues to play an increasing role in the reinsurance market, with 2025 set to reach another record high.
The reinsurance broker explained that financial investors’ capital has reached $120 billion, accounting for approximately 20% of the reinsurance industry’s capital.
Sidecars are special purpose vehicles established by reinsurers to provide significant investor funding capabilities for property, casualty and diversified risks.
Artemis, our insurance-linked securities (ILS)-focused sister publication, tracks reinsurance sidecars in its comprehensive directory.
Commenting on the new COE, Laurent Rousseau, CEO of Guy Carpenter’s Global Capital Solutions business, said: “Sidecars have the potential to deliver significant value to our clients, as long as they are well structured and well managed.
“By bringing together dedicated sidecar resources under one umbrella, we will be able to structure transactions with all stakeholders – reinsurers, sponsors and capital providers – in mind, which will enable our clients to unleash innovation and optimize their risk-return outcomes in today’s more volatile risk environment.”