Hiscox Syndicate 33 has entered into a quota share reinsurance arrangement with Panther Re Bermuda, a $360m Bermuda reinsurance company newly formed by WL Ross & Co.
The agreement will allow Syndicate 33, which is managed and 72.5% owned by Hiscox, to grow its book of property catastrophe reinsurance business during 2007 and 2008.
Under the agreement Panther Re will assume a 40% pro rata share of Syndicate 33's property catastrophe reinsurance business for the 2007 underwriting year and a similar pro rata share to be agreed for the 2008 underwriting year. Panther Re's sole activity will be to participate in the property catastrophe reinsurance business of its only client, Syndicate 33.
Bronek Masojada, chief executive of Hiscox, said: “Creating access to more capital will allow us to take advantage of what we perceive will be a favourable market for writing catastrophe reinsurance business in 2007 and 2008. Syndicate 33 will also benefit by increasing its market presence and having more control over pricing and terms and conditions.”
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