Aon Benfield Fac to roll out additional sidecars

Gavin Bradshaw 12/08/2010

Aon Benfield Fac, the facultative division of Aon Benfield, is to roll out additional vehicles under its Fac Pool Re sidecar programme.

“With the sidecars that we’re building we’re looking to something have almost like aggregate restitution, so clients can access specific additional capacity as a top-up,” said Oliver Schofield, chief strategy officer at Aon Benfield Fac (pictured).

“Because it will be through a sidecar facility it is going to be much more attractively priced than just walking out into the open market and trying to get a distressed quote.”

Aon Benfield launched its new platform, Fac Pool Re, last year. "It was the first time the capital markets had invested in the facultative arena and enabled us to put together some primary capacity, which was the first time it had come into the market for the first time in five years or more,” said Schofield.

The two and a half year programme will transfer large complex global property and catastrophe facultative risk from its clients’ portfolios into the capital markets in conjunction with Execution Limited.

Hannover Re allocated approximately $5m to the transaction and in addition will assume any losses that exceed the $60m capacity of the programme.

Schofield said that Aon Benfield Fac was also looking at building bespoke capacity to support captives that are looking to branch out into other areas of risk as a result of Solvency II.

“We’re looking at how can they help the organisation by self-insuring some risks they’ve traditionally avoided – whether that’s life or motor or others – which we can then put into our sidecars,” he said.

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Aon Benfield Fac to roll out additional sidecars

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