Ledger Investing forms Cayman casualty subsidiaries
Insurance-linked securities insurtech Ledger Investing has formed two new Cayman-based subsidiaries aimed at expanding its presence in the casualty ILS market.
The insurer also said it had transferred the investment management of its casualty ILS funds to the casualty team at Fermat, "leveraging Fermat’s extensive experience in ILS asset management".
Ledger said the formation of Ledger Re SPC, a reinsurer providing institutional investors access to casualty ILS, and Ledger ILS Services, a provider of underwriting and risk management services, further cemented its role in helping managing general agents and (re)insurers source capital in the ILS market.
Ledger Investing will continue to provide support services for its casualty funds.
John Seo, managing director and co-founder of Fermat, emphasised the value of casualty ILS as an asset class: “Fermat continues to see growing investor appetite for alternative fixed income investments. Given the portfolio diversification benefits of casualty ILS, we anticipate broad investor interest, ranging from pension plans seeking income to private credit managers looking for diversification.”
Since its first transaction in 2019, Ledger Investing has been at the forefront of extending the use of ILS markets to finance casualty insurance risks. The company has brought scale and maturity to the casualty ILS market and serves as the premier gateway for insurers, reinsurers, and MGAs to connect with ILS capital.
“These milestones are a pivotal moment in the growth of the casualty ILS market,” said Samir Shah, CEO of Ledger Investing. “Our creation of Ledger Re SPC as a conduit to the ILS
markets and the entry of Fermat mark major steps toward realising the massive, trillion-dollar potential in casualty ILS, which remains a largely untapped asset class consistently delivering attractive and uncorrelated risk-adjusted yield.”
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