Securitization Startup Platform Ledger Launches a Casualty ILS Fund

Ledger Investing, Inc., a technology-driven marketplace for matching insurance risk to capital markets, announced the closing of Nanorock Fund Ltd., an insurance linked security (ILS) fund focused primarily on investing in casualty insurance risks through the Ledger Connect platform.

Nanorock Fund has been capitalized by a large pension plan and will invest in workers’ compensation, general liability, commercial and private passenger auto liability as well as other casualty risks in the U.S. and Europe. It is the industry’s first casualty insurance-focused ILS fund, according to Ledger.

“The substantial commitment and strategic focus of the investor marks a pivotal point for the institutionalization of casualty securitization,” said Samir Shah, CEO and co-founder of Ledger Investing. “The market continues to support our conviction that the most promising path for exponential growth is by leveraging technology to bring the ultimate capital providers closer to the risk originators, standardize securitization structures and provide industry-leading risk analytics and transparency.”

Ledger is financed by venture capitalist and strategic insurance industry investors including AMWINS and Mass Mutual Ventures. In September 2020, Ledger closed a $10 million funding round.

Ledger’s board of directors includes Peter Hancock, former president and chief executive officer of American International Group (AIG) and JP Morgan chief financial and risk officer.

Ledger provides managing general agents and brokers with direct access to licensed insurers and capital. For insurers, Ledger provides access to lower-cost capital that can both reduce risk on the balance sheet while increasing return on equity.

Ledger ILS Managers, LLC, is a wholly owned subsidiary of Ledger Investing, Inc. and an investment advisor. Ledger Capital Markets, LLC is a wholly owned subsidiary of Ledger Investing, Inc. and a securities broker/dealer.

Related:

• Casualty: The Next ILS Frontier?
• Investors in Insurance-Linked Securities Seek to Avoid Exposure to Secondary Perils

Source: Ledger Investing

Topics InsurTech Casualty