Swiss Re, Lloyd’s-backed Coalition forms $300m Bermudian reinsurer Ferian Re

Insurtech Coalition, a cyber managing general agent (MGA) backed by leading global insurers Allianz, Swiss Re CorSo, Arch Insurance, Lloyd’s, Ascot and Vantage, has launched Bermuda-based reinsurer Ferian Re.

Operating as an independent Bermuda-based Class 3B reinsurer, Ferian Re will provide capacity across Coalition’s cyber programmes.

Ferian Re will be capitalised with approximately $300 million from an investor group led by funds managed by BDT Capital Partners, an affiliate of BDT & Company, a merchant bank that works with family- and founder-led businesses to pursue their strategic and financial objectives. Minority investors include The Pritzker Organization, among other sophisticated global investors with long-term investment horizons.

In conjunction with its launch, Ferian Re has committed to participating in Coalition’s cyber insurance programmes alongside leading global insurers and reinsurers, including Allianz Group, Arch Insurance North America, and Swiss Re Corporate Solutions.

“The rapid growth of the cyber insurance industry has outpaced the supply of reinsurance capital. We’re excited for Ferian Re to bring alternative capital to the market and introduce a reinsurer with deep expertise in cyber,” said Joshua Motta (Pictured) , cofounder and CEO of Coalition.

“Our partnership with BDT Capital Partners and other strategic, long-term investors will help address this supply and demand imbalance and support our long-term growth ambitions,” he added.

Dan Jester, president and co-chief investment officer of BDT Capital Partners, said: “Coalition has pioneered a new model of risk management with Active Insurance, which has resulted in continued strong performance and market-leading loss ratios.

“With the formation of Ferian Re, we are excited to provide a tailor-made capital solution to support Coalition as it scales to be one of the largest cyber insurance providers globally. This investment reflects BDT’s differentiated focus on providing patient capital to family- and founder-led companies to support their long-term success.”

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