MGU specialising in credit re/insurance gets insurtech VC backing

Limit Financial (LimitFi), a managing general underwriter (MGU) specialising in credit insurance and reinsurance solutions, has secured a seed funding led by Des Moines-based ManchesterStory, a venture capital (VC) firm focused primarily on the insurtech sector.

LimitFi focuses on low-loss, conservatively structured credit risks where there is not an optimal private capital or capital markets solution. Risk is sourced through a network of banks, lenders, asset managers, brokers and insurers. Product segments are scalable and repeatable and leverage a tech-enabled approach.

The MGA's services and technology connect financial services providers, including banks, lenders, and asset managers, with partners in the insurance ecosystem while the company’s outsourced underwriting model emphasises better risk taking, more diversified exposures, and enhanced profitability. LimitFi helps insurance and reinsurance company clients manage credit liabilities with an end-to-end solution.

“As founders, Zach and I identified key inefficiencies in the credit markets which make it difficult for (re)insurers to access desired exposures in a cost effective manner,” said Adam Budnick, co-founder of LimitFi. “The successful close of our seed round is confirmation that our approach to addressing those market deficiencies is resonating with the insurance and reinsurance communities.”

Co-founder Zach Smith added: “LimitFi’s platform leverages our collective experience in insurance, credit, investment management, and capital markets through multiple credit cycles. We would like to thank ManchesterStory for the support as we build the business. We look forward to working together in the years to come.”

David Miles, founding partner of ManchesterStory, said: “The operational capital provided in this seed round will help LimitFi continue to build out the company’s team and push forward product development. LimitFi provides products and services which have been needed in the (re)insurance sector for some time, and ManchesterStory is pleased to be a part of their journey.”

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