Establishment of new subsidiaries and agreement signifies watershed moment for maturation of casualty ILS market
NEW YORK, Aug. 6, 2024 /PRNewswire/ — Ledger Investing, the leading marketplace connecting insurance risk to capital, announced today an expansion of its capabilities within the casualty insurance-linked securities (ILS) market with the launch of two new Cayman-based subsidiaries: Ledger Re SPC, a reinsurer providing institutional investors access to casualty ILS, and Ledger ILS Services, a provider of underwriting and risk management services. Ledger Investing has pioneered the development of casualty ILS since its founding in 2017 and the formation of these business segments further cements its leading role in helping managing general agents (MGAs) and (re)insurers source capital in the ILS market.
In another sign of the company’s momentum, Ledger Investing is also delighted to announce that the casualty ILS funds previously managed by Ledger, will now be managed by the casualty team at Fermat, leveraging Fermat’s extensive experience in ILS asset management. Ledger Investing will continue to provide support services for those underlying casualty ILS investments.
John Seo, Managing Director and Co-Founder of Fermat, emphasized 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.”
Since its first transaction in 2019, Ledger Investing has been at the forefront of extending the use of ILS markets to finance casualty insurance risks. The company has brought scale and maturity to the casualty ILS market and serves as the premier gateway for insurers, reinsurers, and MGAs to connect with ILS capital.
“These milestones are a pivotal moment in the growth of the casualty ILS market,” said Samir Shah, CEO of Ledger Investing. “Our creation of Ledger Re SPC as a conduit to the ILS markets and the entry of Fermat mark major steps toward realizing the massive, trillion-dollar potential in casualty ILS, which remains a largely untapped asset class consistently delivering attractive and uncorrelated risk-adjusted yield.”
About Fermat Capital Management
Founded in 2001, Fermat Capital Management, LLC seeks alternative fixed income returns by focusing on new asset classes that offer potentially attractive risk premiums. With $10.8 billion in assets under management (as of June 30, 2024), the firm provides investment management services for clients—including pension funds, sovereign wealth funds, endowments, charitable and philanthropic foundations, insurers, family offices, and private investors—from around the world. Fermat’s team has deep expertise in insurance, banking, and capital markets and has served as advisors to government bodies and national regulators. The firm currently manages portfolios in two investment strategies: insurance-linked securities and trade finance. Explore more at www.fcm.com.
About Ledger Investing
Ledger Investing, Inc. has led the development of casualty ILS since its inception in 2017. Named to CB Insights Insurtech 50 (2023), the company started as a Y Combinator startup and has raised over $90M from leading VCs and strategic insurance industry investors. It created the first dedicated casualty ILS fund in 2021, and has securitized billions of dollars of gross casualty premium through primary and secondary transactions. Ledger operates through its wholly owned subsidiaries: Ledger Risk Markets, LLC, a reinsurance intermediary; Ledger Capital Markets, LLC, a securities broker/dealer; Ledger ILS Managers, a registered investment advisor; Ledger Re SPC, a class B(iii) insurer; and Ledger ILS Services, Ltd., an underwriting and risk management services firm. Learn more at www.ledgerinvesting.com.
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