Ledger Investing, the insurance technology (insurtech) and insurance-linked securities (ILS) focused company, has launched a new transparency initiative, making its transaction data publicly available to demonstrate the traction it has been experiencing.
Having placed around $300 million of insurance and reinsurance premium into the capital markets by the end of 2021, Ledger’s 2022 has got off to a strong start.
Founder and CSO Julien Brissonneau explained that, “In the past three weeks, more data and money have flowed through Ledger Investing than during the company’s first three years.”
Ledger’s mission is to leverage its technology to transform insurance contracts into investable securities, helping to enhance the efficiency of the market chain and bringing insurance or reinsurance risk more directly to capital market investors and in a growing array of business lines.
Importantly, Ledger is targeting areas of risk such as casualty lines and last year launched the first dedicated casualty ILS fund, named Nanorock, through which it aims to create a new growth segment in insurance-linked investments.
The company also launched an ILS fund management unit, Ledger ILS Managers LLC, enabling it to also marshal capital to deals more efficiently and manager external capital for investors.
As it scales up, transparency is at the heart of the Ledger Investing business.
Within the transactions it facilitates for clients, Ledger provides rich analytics to allow ceding company and investor to track the progress and the all-importance cash-flows within complex insurance-to-capital market securitisation risk transfers.
But now, the company is also making its transaction data more widely available, having launched a new tracker page showing its premium progress and transactions completed.
“Our startup is pursuing its mission to build an insurance securities marketplace using technology to connect insurers and investors. We believe that transparency and data engineering can bring simplicity and efficiency to the industry. While designing new capital markets standards for insurance risk, there is a need to navigate the intricacies and ramifications at play in large reinsurance contracts,” Brissonneau said.
One data point being exposed is accrued premium through Ledger transactions, which currently stands at somewhere north of $156 million (it’s rising all the time, so this number will be out of date very quickly).
This shows the cumulative accrued gross written premium that flows through the Ledger marketplace, across all transactions the company has facilitated.
Ledger is also exposing its total contracted premium , which now stands at over $332 million, representing strong growth since the end of the year, as well as premium in the last month of over $16.4 million and says that these metrics represent 554% year-on-year growth.
But perhaps most interesting, is the inclusion and disclosure of a list of transactions, which Brissonneau says “offers a level of transparency unprecedented in the industry.”
It provides basic details of transactions completed, demonstrating the less-typical, more differentiated focus of Ledger on lines of business that are not typically securitised and transferred to capital market investors, such as private passenger auto, commercial auto, general liability and workers compensation.