Northern Re’s platform scales to $325m capacity following $150m capital raise

Northern Re, the collateralized reinsurance company that provides investors with access to the returns of its long-tail casualty underwriting business, has announced raising an additional $150 million in committed capital from existing and new institutional investors, which now brings the company’s total platform capacity to $325 million.

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

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

This expanded capital base will heavily support the company and allow it to continue to take on larger and more complex opportunities within the casualty insurance-linked securities (ILS) space, while also maintaining its disciplined approach to underwriting and collateral management.

Anthony McKelvy, Co-Founder of Northern Re, commented: “Many of the capabilities Northern Re is deploying today were scoped over five years ago. We have taken a deliberate approach from the start, and you can see that in the way we evaluate risk, deploy capital, and operationalize each program over time.”

A fundamental aspect of Northern Re’s model is its focus on capital modeling and operational alignment during the entire duration of each transaction.

Peter McKelvy, Co-Founder of Northern Re, said: “Simply providing investors with access and structuring alone is rarely sufficient in Casualty. These transactions evolve materially over their lifespan. Our proprietary modeling platform supports ongoing capital re-allocation as risks develop, which has helped improve outcomes for investors. Building our technology stack from the ground up has been a meaningful advantage.”

Northern Re has also observed a growing level of engagement from cedents, particularly from large, established re/insurance companies that are in search of customised solutions. The company positions its offerings as a complementary strategy that works in conjunction with traditional reinsurance and alternative capital frameworks.