Bamboo Ide8 Insurance Services, LLC, a data-driven insurance distribution platform, has finalised a multi-year sidecar transaction through Greenshoots Re, the first MGA-sponsored sidecar. The deal supports Bamboo’s new California admitted programme with MS Transverse.
We then reported last September, that Greenshoots Re was leveraged to provide reinsurance to cover an E&S program jointly launched with specialty insurer Accredited, however no size was given for this transaction.
Now with the closing of this latest sidecar transaction, Greenshoots Re will now provide fully collateralized reinsurance to four fronting carriers within Bamboo’s portfolio. The total facility has subsequently expanded to roughly $175 million.
Bamboo also noted that every single investor across every sidecar transaction in the Greenshoots Re facility is committed on a multi-year basis, providing Bamboo and its carrier partners with durable, forward capacity through the underwriting cycle.
John Chu, CEO of Bamboo, commented: “Greenshoots Re was built to be a long-term strategic capital vehicle. Welcoming a fourth carrier partner to the platform is further proof of that thesis: new partners see the value of the platform, and existing partners continue to grow with it. At approximately $175 million, with four fronting carriers and every investor committed on a multi-year basis, Greenshoots Re has become exactly the kind of durable, differentiated capacity franchise we set out to create.”
GC Securities, a division of MMC Securities LLC, acted as the sole structuring agent and sole placement agent for the sidecar transactions, while Willkie Farr & Gallagher LLP served as deal counsel.
Liam Martens, Managing Director of GC Securities, said: “We’re proud to have supported Bamboo on another sidecar issuance. We continue to see healthy investor interest in Bamboo’s underwriting platform and the Greenshoots Re franchise. Bamboo has created a business and reinsurance capacity model which is unique amongst their peers and we look forward to working with them on the continued evolution of the Greenshoots Re franchise.”
As a reminder, you can find details of numerous reinsurance sidecar investments and transactions in our directory of collateralized reinsurance sidecars transactions.
