Technology-enabled reinsurer Northern Re has revealed that it has increased committed capital by $150 million, with support from new and existing investors, bringing total platform capacity to $325 million.
With platform development beginning in 2020 and the company officially launching in 2022, Northern Re enters the mortgage reinsurance and insurance-linked securities (ILS) markets with a technology-driven model that is said to be centered on underwriting expertise and strict capital governance.
Since the commencement of underwriting on January 1, 2023, Northern Re, which specializes in high-frequency property and casualty business, has underwritten more than 100 custom reinsurance contracts involving treaties, retrocessions and structured solutions.
The company noted that its expanded capital base will enable it to pursue larger and more complex opportunities while 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 five years ago. We have taken a considered approach from the outset and you can see this in the way we assess risk, deploy capital and implement each project over time.”
Northern Re co-founder Peter McKelvy said: “In the casualty insurance space, simply providing investors with investment opportunities and structures is not enough.
“These transactions undergo significant changes during their lifecycle. Our proprietary modeling platform supports continuous capital reallocation as risks evolve, which helps improve investor outcomes. Building our technology stack from the ground up is a meaningful advantage.”
Northern Re added that there has been increasing participation from cedants, including large, established re/insurance organizations looking for tailor-made solutions.
Last September, the company launched its structured solutions product suite and enhanced account-wide quota sharing capabilities.
These products were created to meet the complex ceding needs of those seeking capital relief, earnings stability and multi-year continuity beyond traditional quota shares.
