Hudson Structured Capital Management Ltd., which enters into insurance and reinsurance investment business as HSCM Bermuda, has co-led a Series A funding round for rideshare focused insurtech company Buckle.
Earlier this summer, Hudson Structured helped Buckle out by its HSCM Bermuda arm recapitalising an auto insurer the start-up was buying to use as a fronting carrier, to support the expansion of its ride share and sharing economy focused strategy.
Now, the insurance, reinsurance and transportation focused investment manager has participated in Buckle’s latest funding round, a $31 million Series A that saw HSCM Bermuda co-lead it alongside insurtech VC’s Eos Venture Partners.
“The ride-hailing market is expected to grow globally to approximately $260 billion by 2024,” explained Vikas Singhal, Partner and CIO of Insurtech at HSCM Bermuda. “As the market grows, demand for straight-forward and affordable insurance coverage for both providers and TNCs will grow with it. We’re excited to help the Buckle team take the company to the next level.”
“The rideshare and dispatched delivery markets need specialized insurance expertise,” added Jonathan Kalman, Founding General Partner at Eos Venture Partners. “Buckle has built a comprehensive insurance solution to this growing market.”
Buckle aims to address gaps in insurance coverage that rideshare workers face, leveraging new sources of data to underwrite the automotive risks it likes, helping to make insurance more comprehensive, affordable, and easier to obtain for rideshare drivers.
The acquisition and recapitalision (by HSCM) of auto insurer Gateway Insurance Company, with its 47 state licenses, now sees Buckle expanding the insurance products it offers to include transportation network companies (TNCs), traditional taxi, limo, and livery businesses using the Curb app.
The start-up remains expansive and aims to bring other products to market in time.
“Whether rideshare drivers are on duty or driving their family around on personal time, Buckle will have them covered,” commented Dustin Walsey, co-founder of Buckle. “We are excited to offer comprehensive, easy-to-understand insurance to active rideshare drivers for overall better personal protection.”
Buckles insurance policies tend to be backed by reinsurance capital from global giant Munich Re and also reinsurance capacity channelled by fronting player Clear Blue Insurance.
Interestingly, Buckle is also planning the acquisition of two of Atlas Financial Holdings, Inc.’s indirect subsidiaries, American Country Insurance Company and American Service Insurance Company, Inc.
These two carriers have 64 state licenses between them and Atlas itself also has a focus on the Livery, Paratransit, Taxi and TNC segments, so there is a clear alignment in this deal.
Buckle is expected to pay up to $5.12 million based on the number of unrestricted licenses at closing and also to recapitalise the insurers before closing.
This Series A funding will help to pay for the acquisition, but it is entirely possibly that Buckle may be looking for additional financing support to recapitalise the two insurance carriers, which may be somewhere else that HSCM’s capital could be put to work.
Hudson Structured, which was established by ex-Goldman Sachs structured finance head Michael Millette, invests in insurtech as one of the range of ways it derives insurance and reinsurance-linked returns for its investors, from across the full range of market access points.