Ascot Group Limited and Antares Capital have entered a strategic partnership to launch Wayfare Reinsurance Limited, a Bermuda-based reinsurance sidecar, alongside Canro Re Limited, a segregated account company also based in Bermuda.
The entities, collectively referred to as Wayfare Re, will be capitalized with approximately US$500 million through equity contributions from both Ascot and Antares.
Wayfare Re will provide Ascot with dedicated underwriting capacity for casualty business in the US and Bermuda reinsurance markets. Antares will act as the exclusive private credit asset manager for the sidecar, managing a portion of its assets through a direct lending strategy that focuses on senior secured loans to sponsor-backed middle market companies in the United States.
Ascot described the partnership as part of its ongoing approach to expand underwriting capacity and strengthen relationships with clients and distribution partners. The initiative is being led by Leadline Capital Partners, Ascot's third-party capital unit.
Aon Securities LLC served as sole structuring and placement agent on the transaction. Willkie Farr & Gallagher LLP and Appleby (Bermuda) Limited acted as legal counsel for Ascot.
Jonathan Zaffino (pictured above), CEO and president of Ascot Group, said that the creation of Wayfare Re reflects growing interest from capital markets firms.
“It is also a key achievement in the continued build out of Leadline, increasing Ascot's capital resilience and thus enabling the company to be a more perfect partner for its insurance and reinsurance clients," Zaffino said.
The move aligns with a wider industry trend of growing reliance on sidecar structures to manage capital needs in insurance and reinsurance markets. In the US, life and annuity insurers have significantly expanded their use of sidecars over the past two years, with individual annuity ceded reserves nearing US$55 billion.
Analysts also point to a 66% rise in reinsurance leverage across the individual annuity sector in the last five years, reflecting an increasing focus on surplus relief and long-term balance sheet stability.
Industry observers also note that jurisdictions such as Bermuda and the Cayman Islands have become central hubs for these structures, as they offer flexibility and access to insurance-linked securities markets.
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