Coalition has announced the formation of Ferian Re – an independent Bermuda-based Class 3B reinsurer that will provide capacity across Coalition’s cyber programs.
Ferian Re will be capitalized with approximately $300 million from an investor group led by funds managed by BDT Capital Partners, LLC, an affiliate of BDT & Company, LLC, a merchant bank that works with family- and founder-led businesses to pursue their strategic and financial objectives.
Minority investors of Ferian Re include The Pritzker Organization among other global investors with long-term investment horizons.
At the same time, Ferian Re commits to participate in Coalition’s cyber insurance programs alongside leading global insurers and reinsurers, which includes Allianz Group, Arch Insurance North America, and Swiss Re Corporate Solutions.
Dan Jester, President and Co-Chief Investment Officer of BDT Capital Partners, commented on the formation of Ferian Re: “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.”
Joshua Motta, founder and CEO of Coalition, added: “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. 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.”
Meanwhile, Coalition recently launched in the UK cyber insurance market, following a multi-year capacity deal with Allianz Global Corporate & Specialty. The company’s launch has so far received positive feedback from British brokers.
