Northern Re grows in-force premium since launch to more than $1 billion

Northern Re, the collateralized reinsurance company that provides investors with access to the returns of its long-tail casualty underwriting business, has now surpassed the $1 billion of in-force premiums milestone.

Northern Re, based in the Cayman Islands and also operating out of New York, launched its business in early 2023.

Since its launch, the organisation has reportedly written more than 100 bespoke reinsurance contracts across treaty, legacy and whole-account, including retrocession, and structured solutions.

While Northern Re’s average line size is around $20 million, the company said it selectively deploys “more than $100 million on individual opportunities where conviction is highest,” which suggests at least one opportunity at that scale exists in the portfolio today.

Since its launch, Northern Re has expanded its remit from a business primarily focused in writing opportunities from the MGA and program business market, to one that faces insurance and reinsurance companies globally, while growing its capital base to $325 million after its recent $150 million capital raise earlier this year.

“Our ability to form deeper partnerships with cedents and execute complex transactions has driven additional demand for Northern capacity,” explained Vincent Pomo, FCAS, Chief Underwriting Officer of Northern Re. “We have never grown for the sake of top line growth. We have scaled the business because the underwriting results have earned us that right, giving our investors, cedents, and capital partners confidence in what we are putting on our books.”

Northern Re’s positioning as a modern reinsurer supported by private capital differentiates it and also serves to make for an efficient business model.

“We’ve taken a hybrid approach to the business which allows us to be genuinely creative in how we solve problems,” added Anthony McKelvy, Co-Founder and Managing Partner of Northern Re. “We can offer cedents the speed and creativity they associate with the capital markets, paired with the longevity and comfort of a reinsurance company they know is focused solely on this asset class. That combination is increasingly what cedents are looking for, and it is difficult to replicate from either side of the market alone.”

Looking ahead, Northern Re anticipates growth opportunities across structured solutions, retrocession, and bespoke casualty transactions, with a growing investor base in support and increasing demand for alternative sources of capital in the sector.