The outstanding market for collateralized reinsurance sidecar structures grew by more than $5 billion in capacity terms over the course of full-year 2025, with casualty and non-catastrophe vehicles a key driver of sidecar market expansion, Aon Securities has said.
Growing third-party and insurance-linked securities (ILS) capital levels and increased investor appetite are helping reinsurance sidecar sponsors expand their vehicles, benefiting from increased capacity or limit, as well as enhanced efficiency through pricing.
Importantly for investors and allocators, we’re told sidecar structures and terms have not changed dramatically over the last year or two, with most sidecars having much more favourably aligned terms these days, that better protect both sponsors and importantly the investors in the vehicles.
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