Martello Re adds $1.3bn to capital and credit facility

Bermuda-based Martello Re has raised almost $1 billion worth of new capital and has also increased its credit facility by $360 million, positioning the two-year-old company for a new round of growth. 

The life re/insurer said its second round of equity funding raised $935 million of equity commitments from existing and new shareholders, exceeding its initial $800 million target. Its increased credit facility came from adding four new banks to its lender group. 

"These commitments, when combined with the Company's current equity and credit facility capacity, brings total drawn and undrawn capital at Martello Re to approximately $3.6 billion, providing a strong foundation for continued growth," the MassMutual-backed company said. 

Dennis Ho, chief executive officer, said: "This is an exciting milestone for our company. Since launching a little over two years ago, Martello Re has grown rapidly to more than 70 employees and over $23 billion in assets under management. Today, we are one of the largest asset-intensive reinsurers in the industry and can offer insurers a reinsurance partner with industry-leading underwriting, risk management, and asset management capabilities.

"We could not have reached this point without the support of our founders MassMutual, Barings, Centerbridge Partners, and Brown Brothers Harriman as well as the dedication and hard work of our exceptionally talented employees. Our company is excited to continue the execution of our long-term strategy of providing life and annuity insurers with a financially strong reinsurance partner that is dedicated to helping them grow their most important business lines."

The company said it would use the capital to continue to support the company's two existing cedants as a strategic reinsurance partner across a range of product lines, while providing reinsurance support to additional cedant partners expected to be added in the coming years, and selectively expand into new business lines and geographies over time.

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