A new Bermuda sidecar reinsurer that will take some of the risks written by an American International Group subsidiary is being funded by investment fund J.C. Flowers, Reuters reported last week. Concord Re Ltd. will provide backup coverage to Lexington Insurance, a subsidiary of AIG, the insurer said, by taking a certain percentage of the premiums Lexington earns and accept a similar percentage of the risks. AIG spokesman Chris Winans declined to comment on what that percentage would be. Concord Re was capitalised with $730 million from equity securities issued by Concord Re?s parent holding company, Concord Re Holdings Ltd., to investment funds managed by J.C. Flowers & Co. LLC and senior secured term loans issued by Concord Re, AIG said. The proceeds of Concord Re?s capitalisation, as well as its share of premiums, will be deposited into a trust account to cover Concord Re?s obligations to Lexington.