Ryan Specialty has announced the creation of Ryan Alternative Capital Re Ltd, a new collateralised reinsurance vehicle designed to provide additional capacity to Ryan Specialty Underwriting Managers’ delegated authority portfolio.

Rac Re has raised about $400 million in committed capital from funds managed by Flexpoint Ford and Sixth Street.

The new vehicle is expected to deliver roughly $900 million in multiyear premium capacity.

It has been launched in collaboration with Bermudian-based global specialty reinsurer Axis Capital, which will support the transaction through its Lloyd’s of London syndicate 1686.

Miles Wuller, chief executive of Rsum, described Rac Re as “the first of its kind in the [insurance and reinsurance] marketplace”.

He said: “Rac Re is a multiyear, multi-class [property and casualty] vehicle that provides capacity for specialty [catastrophe] and non-cat property and casualty risks across our diverse, largely non-correlated portfolio of [managed general agents].

“This vehicle marks a significant opportunity … to accelerate solution delivery to the industry and rapidly respond to future market dislocation.”

Daniel Draper, group chief underwriting officer of Axis, said the deal advances Axis’s specialty leadership ambitions.

“We worked closely with Ryan Specialty to carefully select an attractive portfolio of specialty MGAs that fit our risk reward parameters and align with our delegated underwriting strategy,” he said.

Danny Arnett, managing director of Rsum Alternative Capital, called the deal a “pioneering transaction” that combines catastrophe and casualty risks in a single insurance-linked securities structure.

He added: “We are proud to collaborate with Axis, Flexpoint and Sixth Street and expect that we will be able to replicate many times over this innovative capital solution now that we have successfully proven its viability.”

Deutsche Bank Securities acted as structuring and placement agent, while Sidley Austin LLP and Conyers Dill and Pearman advised Ryan Specialty, and Mayer Brown LLP advised Flexpoint and Sixth Street.