Ledger completes $100m casualty sidecar amid rising demand for options

Ledger Investing, the insurtech and casualty insurance-linked securities (ILS) firm, has funded and launched a brand new $100 million casualty sidecar for a worldwide reinsurer, financing the corporate’s casualty reinsurance enterprise over three underwriting years on a quota share foundation.

Simply final month, it was revealed that Ledger Investing had entered into an settlement with ILS supervisor Fermat Capital Administration, which sees the agency handle casualty ILS funds created by Ledger.

This settlement noticed Fermat set up its personal casualty ILS crew, and Ledger Investing broaden its casualty ILS capabilities with the launch of two new Cayman Islands domiciled subsidiaries, and likewise kind Ledger ILS Providers.

For this new $100 million casualty sidecar facility, Ledger Re SPC, the Cayman-based subsidiary that gives institutional traders entry to casualty ILS, acted because the retrocessionaire.

Ledger Capital Markets, the corporate’s securities dealer/supplier, served as the only real structuring agent and bookrunner for the deal.

“This is a crucial growth for Ledger as we broaden from primarily securitizing MGA-originated portfolios to supporting the long-term capital administration of main (re)insurers. Our expertise in capital modeling and structuring was instrumental in creating a versatile and sustainable resolution that created worth for either side,” stated Samir Shah, CEO of Ledger.

“This transaction underscores the numerous investor curiosity we’re witnessing on this diversifying asset class. The capital efficiencies enabled by casualty ILS are driving a rising demand for these merchandise by (re)insurers,” added Alex Freiberg, CEO of Ledger Capital Markets.

Earlier this month, Ledger ILS Providers employed Wang Xu, a former govt at Hong Kong reinsurer Peak Re, to guide its new Cayman Islands casualty ILS platform.

Discover particulars of quite a few reinsurance sidecar investments and transactions in our listing of collateralized reinsurance sidecars transactions.