Ledger places $300m+ of premium into capital markets in 2021

Ledger Investing, the insurance technology (insurtech) and insurance-linked securities (ILS) focused company, said that over the course of 2021 it placed more than $300 million of gross premium directly into the capital markets, as it continued to build out its risk securitization platform.

Ledger Investing also said that it sourced capacity for casualty insurance-linked securities (ILS) transactions across more than 60 insurance programs during the year, including renewals and also multi-year commitments.

Ledger sees the casualty ILS space as a potential trillion dollar asset class, with its recently launched dedicated casualty ILS fund, Nanorock, seen as a first step in creating a new growth segment in insurance-linked investments.

Through the use of its technology platform, Ledger believes it can help to both speed up the securitization of insurance and reinsurance risks, and make longer-tailed lines such as casualty more readily accessible by investors.

“Throughout 2021, the Ledger team had the privilege to witness modern insurance securitization in its infancy,” the company explained.

Adding that, during 2021, “Ledger established a standard of operations for ILS structures, modeling, and deal execution… leading to new overall record speeds. Our team condensed the securitization process into a few weeks instead of months. Ledger deals are faster than the industry for risk transfers while delivering better value with capital markets placements.”

In 2022, Ledger Investing plans to release new products to help its clients, including a “Ledger Connect” extension to its platform and additional features to democratize access to Ledger securities.

“In 2022, Ledger apps will provide even more meaningful connections for MGAs and brokers accessing licensed insurers and capital. We focus on bringing solutions to insurance core problems, expanding better technologies, and helping smarter capital allocations,” the company explained.

The way Ledger is utilising technology to make it simpler for MGA’s and insurers to access the capital markets for classes of risk that can be more challenging to place through traditional ILS market means, while providing an interface for investors to allocate to and better understand their investments, is a bold strategy.

It is blending the roles of broker or bank and investment manager, all while creating its own breed of investible insurance-linked securities and reimagining the insurance and reinsurance risk-to-capital market chain.