Hamilton, Bermuda-based Argo Group International Holdings Ltd. has established a new sidecar reinsurer for the 2014 accident year, Harambee Re Ltd., and has also placed a series of three catastrophe bonds, which will provide $172 million of protection to its insurance and reinsurance subsidiaries through Loma Re Insurance (Bermuda) Ltd., Argo said Monday.

The new Harambee Re sidecar will support two of Argo Group’s core business units and include both a reinsurance and an insurance portfolio. Reinsurance through Harambee Re will cover specific property portfolios underwritten by Bermuda reinsurer Argo Re and Colony Specialty, Argo Group’s excess and surplus lines segment, Argo said in its statement.

“We are pleased to continue support of our business growth objectives through this vehicle, which is larger for 2014 than for 2013. Harambee Re enables us to increase our underwriting capacity for key business units without adding materially to the Argo Group’s overall exposure to volatility associated with catastrophe losses.” Argo Group CEO Mark E. Watson III said in the statement.

The Loma bond program began Jan.1 covering against U.S. hurricanes, earthquakes and convective storms and Canadian earthquakes for four years for Argo Group’s participating U.S. insurance units, Argo Re, and Lloyd’s syndicate 1200.

Argo said in its statement that it is one of the first in the catastrophe bond market to offer a product with an annual aggregate loss calculation which combines an indemnity trigger mechanism for traditional insurance business with an index-based trigger mechanism for reinsurance business, adding that participation in the insurance-linked securities market is also expected to position the company to continue to capitalize on market opportunities, by efficiently replacing capital otherwise needed to support the risk of frequent and sizable events.

“We were pleased to expand our participation in the ILS market as a key part of our catastrophe risk management program,’’ Mr. Watson said in the statement. “The aggregate coverage and term of the Loma Re protection adds attractive stability to Argo’s financial results.’’