November 4, 2026
In this interview with The Insurer, Ed Hochberg, Head of Structured Solutions, describes how he expects the softer market to test sidecar structures established during the hard market, with liquidity as a particular area for investor scrutiny.
Interest in reinsurance sidecars remains strong among market participants and outside investors. Ed said he had not seen fundamentally flawed vehicles but warned that investors should examine their liquidity assumptions, particularly involving private credit funds.
“The thing that will kill you is if you don’t have the liquidity, if there’s not sufficient cash flow,” he explained. “And you’re forced to liquidate in a down market-to-market situation. That’s where it could go wrong.”