Marsh sets up the first broker-led property catastrophe sidecar in Bermuda...

Marsh has announced the creation of MaRI (Marsh Risk Innovations), a reinsurance sidecar designed to provide additional capacity to the depleted property catastrophe insurance market this year.

The additional capacity will be made available through reinsurance provided by MaRI, a newly-formed Bermuda-based reinsurer, to Ace. Marsh collaborated with Ace and Morgan Stanley, which served as structuring advisor and placement agent, to create MaRI.

Traditionally, this form of extra risk capital, through a sidecar, allows reinsurers to offer more capacity to their clients, the retail insurers. What makes the MaRI structure unique is that it provides Marsh clients with direct access to the capital markets through a highly-rated Ace delivery vehicle.

“In the wake of the 2005 US hurricane season and growing concerns about natural disasters in the years ahead, obtaining sufficient insurance coverage for catastrophic loss has been extraordinarily difficult for many of our clients,” said Brian Storms, chairman and chief executive of Marsh. “The capacity MaRI provides could only be produced by a firm with deep intellectual capital, an integrated approach, and excellent industry relationships – as evidenced by our important collaboration with a highly-rated carrier like Ace.”