Coalition forms Bermudian-based Class 3B reinsurer

Coalition, the San Francisco-headquartered provider of cyber insurance and security, has formed Ferian Re, an independent Bermudian-based Class 3B reinsurer that will provide capacity across Coalition's cyber programmes.

Ferian Re will be capitalised with about $300 million from an investor group led by funds managed by BDT Capital Partners, an affiliate of merchant bank BDT & Company. Minority investors include the Pritzker Organisation.

Ferian Re will participate in Coalition's cyber insurance programmes alongside global insurers and reinsurers, including Allianz Group, Arch Insurance North America, and Swiss Re Corporate Solutions.

Joshua Motta, founder and chief executive officer of Coalition, said: "The rapid growth of the cyber insurance industry has outpaced the supply of reinsurance capital. We're excited for Ferian Re to bring alternative capital to the market and introduce a reinsurer with deep expertise in cyber. Our partnership with BDT Capital Partners and other strategic, long-term investors will help address this supply and demand imbalance and support our long-term growth ambitions."

Dan Jester, president and co-chief investment officer of BDT Capital Partners, added: "Coalition has pioneered a new model of risk management with Active Insurance, which has resulted in continued strong performance and market-leading loss ratios. With the formation of Ferian Re, we are excited to provide a tailor-made capital solution to support Coalition as it scales to be one of the largest cyber insurance providers globally.”