Ledger Investing, a marketplace to bridge the gap between insurance risk and capital, has raised funding and unveiled a casualty sidecar facility.
Offering up to $100m in capital, this sidecar will fund the casualty reinsurance operations of a global reinsurer for three underwriting years on a quota share basis.
Ledger Investing’s Cayman Islands-based subsidiary, Ledger Re SPC, acted as the retrocessionaire, providing institutional investors access to casualty ILS.
Ledger Capital Markets was the sole structuring agent and bookrunner.
Commenting on the move, Ledger CEO Samir Shah said: “This is an important development for Ledger as we expand from primarily securitising MGA-originated portfolios to supporting the long-term capital management of leading reinsurers.
“Our experience in capital modelling and structuring was instrumental in developing a flexible and sustainable solution that created value for both sides.”
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By GlobalData
Ledger Capital Markets CEO Alex Freiberg said: “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 reinsurers.”
Last month, Ledger Investing expanded its operations, aiming to enhance its position within the casualty ILS market.
The company introduced two subsidiaries, Ledger Re SPC and Ledger ILS Services, also based in Cayman Islands, to provide institutional investors with access to casualty ILS and offer underwriting and risk management services.
Since its foundation in 2017, Ledger Investing has been engaged in developing the casualty ILS market.
In August 2023, the company facilitated a secondary transaction, syndicating nearly $250m in premiums to three institutional investors.
This transaction covered a diversified portfolio across four lines of business – workers’ compensation, general liability, private passenger auto and commercial automobile – and spanned 25 individual programmes.
Additionally, in June 2022, Ledger Investing secured $75m in Series B investment.
The financing round was led by WestCap, with contributions from Teachers’ Venture Growth, Intact Ventures, and existing investors such as SignalFire, MassMutual Ventures, Allegis Capital and Accel.
