Panther Re and Hiscox separate

by Richard Kilner

Story link: Panther Re and Hiscox separate

Hiscox has announced that, after a partnership lasting less than a year, it will not be renewing its relationship with Panther Re in 2008.

Hiscox informed the London Stock Exchange that the partnership between Panther and Hiscox Syndicate 33 would not be renewed for the year of account in 2008.

Despite the brevity of the partnership Hiscox has expressed its delight to have been involved in the first Lloyd’s sidecar and intends to use equally innovative risk financing approaches in years to come.

Panther Re is a sidecar with Lloyd’s Syndicate 33 as its sole client, and joined a collateralised quota share reinsurance treaty that was managed and underwritten by Hiscox.

The initial capitalisation for the sidecar was $360m, consisting of $144m in mezzanine term loans and common equity each and $72m in senior term loans.

Some business given over to Panther will be retained by Syndicate 33, it is expected, although some will be given over to other partners and some risks will simply not be renewed.