Ledger Investing, an insurtech and insurance-linked securities (ILS) focused venture-backed company, has expanded its casualty ILS capabilities with the launch of two new Cayman-based subsidiaries.
The firm has created Ledger Re SPC as a reinsurer that aims to provide institutional investors access to casualty ILS, and Ledger ILS Services, as a provider of underwriting and risk management services.
Since its founding in 2017, Ledger Investing has pioneered the development of casualty ILS, and the formation of these business segments further cements its role in helping managing general agents (MGAs) and re/insurers source capital in the ILS market.
At the same time, the company also announced that the casualty ILS funds previously managed by Ledger will now be managed by the casualty team at Fermat, a US based investment management company specialising in ILS.
Ledger Investing noted that it will continue to provide support services for those underlying casualty ILS investments.
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.”
The establishment of its two new subsidiaries and agreement signifies watershed moment for maturation of casualty ILS market, Ledger noted.
Samir Shah, CEO of Ledger Investing, commented: “These milestones are a pivotal moment in the growth of the casualty ILS market. 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.”
