Guy Carpenter has established a global Sidecar Center of Excellence to provide clients with resources for managing capital, volatility and growth. The reinsurance broker said the initiative is intended to strengthen its capital solutions offering.
Ed Hochberg (pictured above), global risk solutions leader, will lead the new center alongside his current responsibilities.
The move comes as alternative reinsurance capital continues to expand its presence in the market. Financial investors now represent more than US$120 billion, or an estimated 20% of capital dedicated to the reinsurance industry, with 2025 marking another record year.
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Guy Carpenter said dedicated reinsurance capital grew by about 9% in 2025, supported by retained earnings and continued participation from alternative capital, contributing to excess capacity across the market.
The broker also reported that catastrophe bond issuance continued at record levels, with total outstanding notional limit exceeding US$58 billion and 15 first-time sponsors entering the market.
Sidecars are special purpose vehicles formed by reinsurers that provide investor-funded capacity for property, casualty and diversified exposures.
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Sidecars have continued to gain traction, particularly for longer-tail casualty portfolios. Aon has noted that sidecars are becoming a growing source of proportional capacity in the reinsurance market.
Laurent Rousseau, CEO of Guy Carpenter's Global Capital Solutions business, said the center will consolidate the firm's sidecar resources under a single structure.
"Sidecars have the potential to offer great value to our clients, provided they are well-structured and managed," Rousseau said. He added that by bringing dedicated sidecar resources together under one umbrella, the firm will be able to structure transactions with all stakeholders in mind, including reinsurers, sponsors and capital providers.
Rousseau said the approach is intended to help clients "unlock innovative capacity and optimize their risk-return outcomes in today's more volatile risk environment."
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