Ledger Investing, an insurtech and insurance-linked securities (ILS) focused venture-backed company, has successfully funded and launched a new casualty sidecar facility, designed to provide up to $100 million of capital to finance the casualty reinsurance business of a global reinsurance firm over three underwriting years, and on a quota share basis.
Ledger Re SPC, the recently established Cayman-domiciled subsidiary of Ledger Investing that provides investors with access to ILS, served as the retrocessionaire for the facility.
Samir Shah, Chief Executive Officer (CEO) of Ledger, commented, “This is an important development for Ledger as we expand from primarily securitizing MGA-originated portfolios to supporting the long-term capital management of leading (re)insurers.
“Our experience in capital modeling and structuring was instrumental in developing a flexible and sustainable solution that created value for both sides.”
Ledger Capital Markets acted as the sole structuring agent and book-runner for the deal.
This sidecar follows the completion of a secondary $250 million casualty ILS transaction to three institutional investors last year, and comes soon after Ledger’s partnership with ILS manager Fermat Capital Management, who now manage the casualty ILS funds previously managed by Ledger.
Alex Freiberg, CEO of Ledger Capital Markets, added, “This transaction underscores the significant investor interest we are witnessing in this diversifying asset class. The capital efficiencies enabled by casualty ILS are driving a growing demand for these products by (re)insurers.”
