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The Hanover creates sidecar for Chaucer Syndicate

Posted On: Dec. 21, 2017 12:09 PM CST

The Hanover creates sidecar for Chaucer Syndicate

The Hanover Insurance Group Inc. said Thursday that its Chaucer international specialty insurance group has created a reinsurance sidecar to provide collateralized capacity for Chaucer Syndicate 1084's global property reinsurance portfolio in 2018.

Bermuda-based Thopas Re Ltd. will reinsure a share of Chaucer's U.S. and international property catastrophe portfolio through an exclusive quota share agreement beginning Jan. 1, 2018, The Hanover said.

Thopas Re, a newly formed segregated account company, will be initially capitalized with $95 million of third-party investor capital.          

TigerRisk Capital Markets & Advisory acted as sole structuring and placement agent on the transaction. Mayer Brown L.L.P. and Appleby (Bermuda) Ltd. provided legal counsel, the statement said.

"The creation of a reinsurance sidecar provides Chaucer and The Hanover with another means of leveraging our strong underwriting capabilities, and is a first step in creating new relationships with capital market partners," said Jeffrey Farber, executive vice president and chief financial officer at The Hanover, in the statement.