AXIS registers Monarch Point Re casualty collateralized insurer for 2025

AXIS Capital, the specialty insurance and reinsurance company, has registered a fourth collateralized insurer class of company in Bermuda to support further expansion of its Monarch Point Re casualty insurance-linked securities (ILS) platform in 2025.

AXIS Capital teamed up with sector focused investor Stone Point to launch Monarch Point Re in 2023, after a more than $400 million capital raise.

The Monarch Point Re vehicle operates as a kind of third-party capitalised casualty reinsurance sidecar structure, with a total return approach.

Before that launch, Artemis had reported that two collateralized insurer class companies had been established in Bermuda, with Monarch Point Re (ISAC) Ltd. and Monarch Point Re (ISA 2023) Ltd. both registered by the Bermuda Monetary Authority (BMA), the island’s regulator in May 2023.

Then, presumably to support ongoing expansion of the Monarch Point Re casualty ILS quota share sidecar, a third structure was registered with the BMA in February 2024.

Monarch Point Re (ISA 2024) Ltd. was registered as an additional collateralized insurer class company in Bermuda to support the casualty ILS platform last year.

Now, for 2025, a fourth collateralised insurer company has been registered by the BMA, again we expect to support the continued build-out of the Monarch Point Re casualty ILS venture.

Monarch Point Re (ISA 2025) Ltd. was registered by the BMA in January 2025, the latest collateralized insurer for the AXIS casualty sidecar-like operation.

Monarch Point Re was launched with over $400 million of equity, including a $75 million investment from a subsidiary of AXIS Capital and a $75 million investment from Stone Point Credit Adviser LLC.

Monarch Point Re operates out of Bermuda, underwriting a diversified portfolio of casualty reinsurance business that is retroceded to it by subsidiaries of AXIS Capital through a quota share arrangement.

Stone Point Credit acts as the exclusive investment manager for Monarch Point Re, allocating its capital to a diversified portfolio of corporate credit which gives a total-return approach, thanks to the longer-tailed liability ILS nature of the subject casualty business which allows for a more flexible investment strategy.

Given this launch of a fourth collateralized insurer structure for Monarch Point Re for 2025, presumably the reinsurance agreement could see more in casualty premiums ceded through it this calendar year as well.

As we reported in January, AXIS Capital reported a significant 39% increase in fee income generated from its work with third-party investors for full-year 2024.

Third-party capital related fee income has been rising at AXIS ever since its launch of the Monarch Point Re casualty insurance-linked securities (ILS) vehicle.

As the Monarch Re casualty ILS strategy expands, AXIS is passing on premiums to the structure helping the re/insurer shape its own book while ceding a portion of its casualty risks to investors that appreciate the returns of this business and earning a higher level of fee income as a result.