Novacore, an independent managing general agent (MGA), has secured collateralized reinsurance support from a new sidecar structure backed by New York headquartered alternative investment firm New Mountain Capital, LLC, which alongside its affiliates has around $60 billion in assets under management.
NovaRe will provide multi-year capacity to support Novacore’s expanding MGA business, bringing it a supportive pool of reinsurance capital to enable an “efficient response to market opportunities while preserving balance sheet stability for carrier partners,” the companies explained.
Novacore already has a capital relationship with New Mountain, as the investment firm is a key strategic capital partner for the MGA.
The NovaRe sidecar has been structured to participate on a risk-attaching basis across a diversified range of specialty property and casualty portfolios within Novacore’s platform.
The MGA said this will align its capital providers, carrier partners and underwriting teams, given the “shared risk and shared return.”
Aaron Miller, Chief Executive Officer of Novacore, commented on the sidecar launch, “NovaRe represents a natural extension of our underwriting-first philosophy. We are committed to growing with our carrier and capacity partners in a disciplined and sustainable manner.
“With the support of New Mountain Capital, we are able to thoughtfully expand capacity behind programs that have demonstrated consistent performance, strong controls and differentiated market positioning.”
Chase Clark, Chief Operating & Underwriting Officer of Novacore, added, “Our platform has always been built on underwriting expertise, diversified distribution and disciplined program management with profitability always being our primary focus. This initiative strengthens our ability to support carrier partners with capital-efficient growth while maintaining the same rigorous standards that define the Novacore brand.”
Robert Mulcare, Managing Director at New Mountain, further stated, “Novacore has consistently demonstrated its ability to identify attractive specialty markets and execute with underwriting precision. The structure underscores our shared commitment to responsible growth, disciplined risk management and sustainable value creation across the specialty insurance landscape.”
Cyrus Moshiri, Head of Structured Credit at New Mountain also said, “We are pleased to support this capital solution, which aligns long-term investment capital with a diversified portfolio of well-managed programs.”
MGA Novacore said that the launch of the NovaRe sidecar demonstrates its “commitment to innovation in specialty program management while continuing to deepen partnerships across the carrier, reinsurance and specialty program ecosystem.”
MGA’s are increasingly bringing the capital markets into their business structures, in collateralized reinsurance formats to help in providing growth capacity, while managing and moderating exposure and losses as well.
Through partnerships with capital market investors in this way, MGA’s can use sidecar and partner capital structures to fuel their growth and provide efficient reinsurance capacity.
Find details of numerous reinsurance sidecar investments and transactions in our directory of collateralized reinsurance sidecars transactions.
