Technology-enabled reinsurance firm Northern Re has revealed a $150 million increase in committed capital, bringing total platform capacity to $325 million, supported by both new and existing investors.
With platform development beginning in 2020 and the company formally launching in 2022, Northern Re entered the collateralised reinsurance and insurance-linked securities (ILS) market with a technology-driven model that, it says, is centred on underwriting expertise and disciplined capital governance.
Since commencing underwriting on January 1, 2023, Northern Re, which is focused on high-frequency Property and Casualty business, has written more than 100 bespoke reinsurance contracts across treaty, retrocession, and structured solutions.
The firm noted that its expanded capital base will enable it to pursue larger and more complex opportunities while maintaining its disciplined approach to underwriting and collateral management.
Anthony McKelvy, Co-Founder of Northern Re, commented, “Many of the capabilities Northern Re is deploying today were scoped over five years ago. We have taken a deliberate approach from the start, and you can see that in the way we evaluate risk, deploy capital, and operationalise each program over time.”
Peter McKelvy, Co-Founder of Northern Re, said, “Simply providing investors with access and structuring alone is rarely sufficient in Casualty.
“These transactions evolve materially over their lifespan. Our proprietary modelling platform supports ongoing capital re-allocation as risks develop, which has helped improve outcomes for investors. Building our technology stack from the ground up has been a meaningful advantage.”
Northern Re added that it continues to see increasing engagement from cedents, including large, well-established re/insurance organisations seeking tailored solutions.
In September last year, the firm launched its structured solutions product suite and enhanced whole account quota share capabilities.
The products were created to address complex cedent needs, those seeking capital relief, earnings stability, and multi-year continuity, beyond traditional quota share.
