Limit Financial (LimitFi), a managing general underwriter (MGU) specializing in credit insurance and reinsurance solutions, has closed a seed funding round led by Des Moines-based ManchesterStory, a venture capital firm focused on the insurtech sector.
LimitFi focuses on low-loss, conservatively structured credit risks where there is not considered to be an optimal private capital or capital markets solution.
Risk is sourced through a network of banks, lenders, asset managers, brokers and insurers, utilising technology and scalable product segments.
“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.”
David Miles, founding partner of ManchesterStory , also commented: “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.”
LimitFi’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 is designed to promote better risk decisions and more diversified exposures.
“LimitFi’s platform leverages our collective experience in insurance, credit, investment management, and capital markets through multiple credit cycles,” said Zach Smith, co-founder of LimitFi. “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.”