Ryan Specialty has launched a new reinsurance vehicle called Ryan Alternative Capital Re, Ltd., or RAC Re. This new setup aims to add extra reinsurance capacity to Ryan Specialty Underwriting Managers’ portfolio, supporting their line of property and casualty insurance business. RSUM, the division behind this, handles delegated underwriting within Ryan Specialty.
The CEO of RSUM, Miles Wuller, described RAC Re as a unique sidecar. It’s designed to cover multiple years and various classes of property and casualty risks, including both catastrophe and non-catastrophe risks. It focuses on a broad range of specialty managing general agents (MGAs) with largely unconnected risk profiles.
RAC Re has raised about $400 million from investment funds managed by Flexpoint Ford and Sixth Street. This capital will help support RSUM’s platform over a multi-year period. In total, the vehicle is expected to provide around $900 million in premium capacity.
The vehicle’s launch was made possible through a partnership with Axis Capital, specifically involving Axis’s Lloyd’s of London syndicate 1686. Axis will back the transaction and help manage the risk.
Wuller pointed out that RAC Re offers RSUM a chance to move quickly and offer new solutions to the market, especially during times of market change. He expressed enthusiasm about working with Axis and praised the investors for their strong histories in specialty insurance.
On Axis’s side, Daniel Draper, the group chief underwriting officer, said the partnership helps expand their presence in select markets. He noted they carefully chose MGAs that match their risk and partnership goals, and that the arrangement reflects Axis’s commitment to responsible growth with solid controls.
Overall, RAC Re appears set to give Ryan Specialty and its underwriting partners more room to grow and respond to the insurance market’s shifting needs. It’s an interesting move that could shape how specialty insurance is underwritten in the coming years.