Ledger Investing launches $100mn casualty sidecar

ILS insurtech Ledger Investing has announced the funding and launch of a new casualty sidecar facility that will provide up to $100mn of capital to finance the casualty reinsurance business of a global reinsurer over three underwriting years on a quota share basis.

Ledger Re SPC, the Cayman-based subsidiary of Ledger Investing that provides institutional investors access to casualty ILS, served as the retrocessionaire.

Ledger Capital Markets acted as the sole structuring agent and bookrunner for the deal.

New York-based Ledger said the transaction reinforces its “position as the leader in casualty ILS”.

“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 (re)insurers,” said Samir Shah, CEO of Ledger.

“Our experience in capital modelling and structuring was instrumental in developing a flexible and sustainable solution that created value for both sides,” he added.

Alex Freiberg, CEO of Ledger Capital Markets, added that the “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 (re)insurers," he continued.

Ledger in August this year launched two new Cayman-based subsidiaries. Ledger Re SPC is a Class B(iii) reinsurer that provides institutional investors access to casualty ILS, while Ledger ILS Services Ltd offers underwriting and risk management services.

In addition to the two new vehicles, it was announced that casualty ILS funds previously managed by Ledger will now be managed by the casualty team at Fermat Capital Management.

Ledger was founded in 2017 and has led the development of casualty ILS.

It created the first dedicated casualty ILS fund in 2021 and securitised billions of dollars of gross casualty premium through primary and secondary transactions.

In August last year Ledger completed a secondary $250mn casualty ILS transaction to three institutional investors.