Ledger Investing has launched a casualty sidecar facility, providing up to $100mn of capital to finance the casualty reinsurance business of a global reinsurer.
The facility will provide coverage over three underwriting years on a quota share basis.
Ledger Capital Markets acted as the sole structuring agent and bookrunner for the deal.
Cayman based subsidiary of Ledger Investing, Ledger Re SPC, served as the retrocessionaire.
Samir Shah, CEO of Ledger, said: "This is an important development for Ledger as we expand from primarily securitizing MGA-originated portfolios to supporting the long-term capital management of leading (re)insurers.
“Our experience in capital modeling and structuring was instrumental in developing a flexible and sustainable solution that created value for both sides."
Alex Freiberg, CEO of Ledger Capital Markets, said: “This 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.”
Ledger Re SPC, alongside Ledger ILS Services, were launched last month, with the former offering casualty ILS to institutional investors, and the latter providing underwriting and risk management services.
In addition to the launches of the two Cayman Islands-domiciled subsidiaries, Ledger Investing also confirmed that its casualty funds would be managed by Fermat.
This publication reported in August that third-party capital had begun flowing into sidecars, with casualty vehicles specifically garnering interest.
Sources had noted that the number of casualty ILS transactions had accelerated over the past 12 months due to the returns on offer, with typical vehicle sizes ranging between $200mn and $300mn.