157 Re reinsurance sidecar improves our capabilities: Arundo Re’s Montador

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In an interview with Artemis, Laurent Montador, Deputy CEO of French reinsurer Arundo Re, discussed the recent renewal and launch of the seventh sidecar in the 157 Re series of deals, stating that it enhances the company’s capability to allocate more capacity in targeted areas while strengthening alignment with investors.

Now in its seventh vintage, the company has sponsored a 157 Re reinsurance sidecar annually since 2019.

“The sidecar improves our capabilities to put more capacity in the area that we want, and the investors are in the same shoes as us, which is good for them and us to have a complete alignment of interest,” explained Montador.

The Deputy CEO noted that Arundo Re introduced key improvements to the 157 Re sidecar this year.

“We have worked a lot with the French commissioners and with the investors to improve the product and to improve its liquidity,” he said. “Avoiding, as much as possible, the trapped capital potential, which is good.”

The company sought to further optimise the structure, enhancing the efficiency and effectiveness of the collateralised capacity and retrocessional protection it provides.

Montador also highlighted Arundo Re’s distinctive role in the French market, noting that it remains the only company currently offering this type of sidecar structure.

“I don’t know why there isn’t more traction from other companies, but there is definitely a plan with the Treasury to make Paris a good place internationally for ILS business,” he said.

While acknowledging the more established infrastructure in Bermuda, Montador remains optimistic about France’s growing presence in the ILS market.

“I don’t think it would be as easy as what is now in Bermuda, with a clear infrastructure for many years, but it’s the beginning of something and we advocate that to the French Treasury,” he stated. “French Politics has been quite a bit difficult to follow in recent years, but it’s coming. We have shown and proved that it is possible with our successful 157 Re sidecar.”

Montador further explained that Arundo Re’s natural catastrophe exposure is ceded proportionally through the 157 Re sidecar, with claims taken only when they exceed EUR 5 million at the company’s share.

He added, “There is a specific commission which takes that into account, in order to give back some money to us to take into account the losses not greater than EUR 5 million.”

In 2022, Arundo Re announced a 22% increase in the size of its 157 Re sidecar and the addition of a new investor. The following year, the sidecar grew by over 40%, with another new investor.

In 2024, the firm stated it had taken “full advantage of its 157 Re platform to consolidate its growth trajectory.”

While the exact size of the issuances has never been disclosed, 157 Re has become a core retrocession and partnership capital structure for its sponsor.

Further details on each 157 Re sidecar issues can be found in our directory of reinsurance sidecar transactions.

157 Re reinsurance sidecar improves our capabilities: Arundo Re’s Montador was published by: www.Artemis.bm
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