Hudson Structured Capital Management Ltd., which enters into insurance and reinsurance investment business as HSCM Bermuda, has participated as an investor in a $60 million Series B funding round for auto and rideshare focused insurtech company Buckle, expanding its investment in the company.
At the same time, Hudson Structured, acting as HSCM Bermuda, has also doubled the size of a surplus loan debt financing arrangement it already had in place to support Buckle’s insurance carrier.
The ILS, reinsurance and transportation investment manager began its investment relationship with Buckle in 2020, when Hudson Structured recapitalised an auto insurer to support the expansion of the ride share and sharing economy focused insurtech.
Buckle had acquired auto insurer Gateway Insurance Company (Gateway), a company with 47 state insurance licenses, and Hudson Structured, through HSCM Bermuda recapitalised Gateway, supporting the financing of the licensed fronting carrier.
Hudson Structured then co-led a $31 million Series A funding round for Buckle in August 2020, expanding its investment relationship with the auto insurtech.
Now, the investment manager has doubled-down on both aspects, by participating in a new $60 million Series B funding round for Buckle, that was led by Volery Capital Partners with participation from Eldridge, Assurant Ventures, HSCM Bermuda and other insiders.
On top of the $60 million in Series B financing, Buckle also announced that HSCM Bermuda has expanded the surplus term loan it provided from $10 million to $20 million, which is a move designed to provide additional capital to support the premium growth of Buckle’s Gateway Insurance Company.
“This new raise helps validate Buckle’s positive momentum across its insurance programs and reinforces our belief in the opportunity for growth the Company faces today,” explained Marty Young, co-founder and CEO of Buckle. “Through our capital efficient, multi-carrier strategy, we’re expanding our digital insurance platform nationwide so that we can offer a range of attractive insurance options to U.S. gig economy workers, many of whom have been considered essential workers throughout the pandemic.”
Hudson Structured invests across the insurance and reinsurance market spectrum, including insurtech, with direct investments into risk via insurance-linked securities (ILS) arrangements, private debt financing and also venture-style equity investments.