Hudson Structured Capital Management Ltd., undertaking its insurance and reinsurance investment business as HSCM Bermuda, has participated in a $44 million capital raise for CAPE Analytics, a technology firm offering structured property and geospatial data and analytics.
CAPE Analytics has products designed specifically for those providing reinsurance capacity, so relevant to reinsurers and insurance-linked securities (ILS) funds or other collateralized reinsurance providers.
These solutions offer a way to augment a cedents property portfolio with risk-specific data, allowing for increased accuracy of risk assessments and improved underwriting decisions to be made.
CAPE Analytics announced a $44 million Series C financing, led by Pivot Investment Partners, with across-the-board participation from existing investors, including Formation8 and Brewer Lane Ventures, as well as many funds associated with insurance carriers, including State Farm Ventures, The Hartford, State Auto Labs Fund, and The Cincinnati Insurance Company.
But new investors also participated in this funding round for CAPE Analytics and they were Aquiline Technology Growth and HSCM Bermuda.
The company intends to use the new capital raised to accelerate the development of new property insights, powered by machine learning.
CAPE Analytics says it uses machine learning and computer vision to provide new forms of property information, built specifically for those that finance, protect, and invest in homes and businesses.
As a result, the output of CAPE Analytics services are valuable risk modelling data to inform insurance and reinsurance underwriting, so should be valuable to a firm like Hudson Structure in more ways than purely as an insurtech venture investment, given HSCM also manages portfolios of ILS and reinsurance.
“We’re honored to have the support of Pivot Investment Partners, HSCM Bermuda, and Aquiline Technology Growth—in addition to our existing, stellar group of investors. Their backing is a testament to CAPE’s success thus far in creating a new category of property intelligence for the insurance and real estate industries,” Ryan Kottenstette, CEO of CAPE Analytics explained. “I look forward to working with our world-class team to continue pioneering additional, high-impact property insights that help better inform our decisions about how to protect and invest in the built environment.”
Alongside investing in insurance-linked securities (ILS) and reinsurance more broadly, Hudson Structured invests in insurtech (insurance technology) companies 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.