Ledger partners with Saudi institution ANB Capital for $100m casualty ILS fund

Ledger Investing, the insurance technology (insurtech) and insurance-linked securities (ILS) focused company, has agreed and signed a memorandum of understanding (MOU) to develop a $100 million ILS fund in partnership with Saudi Arabia based investment institution ANB Capital.

It seems Ledger Investing will provide at least the origination and portfolio management services to develop an up to $100 million insurance-linked securities (ILS) fund focused on casualty risks, we understand.

The strategy for this ANB Capital arrangement will be focused on these often longer-tailed types of insurance risks, where Ledger’s technology-led approach to making risks investable can help to create a differentiated strategy.

It will be the first insurance-linked securities fund to be launched to investors in Saudi Arabia, we’re told, and will have a focus on US risks in casualty lines of insurance business.

ANB Capital will market the product to investors in Saudi Arabia, once the casualty ILS fund has been established and approved by regulators.

This is a strong partnership win for Ledger Investing, with ANB Capital offering a number of Shariah compliant and other investment strategies at this time, including a range of alternatives that ILS would be complementary to.

It also provides Ledger with access to a new and diversifying source of investor capital to back its casualty ILS deals, helping it to continue growing the insurance premium volumes written and invested in.

The MOU was signed at an event held in Riyadh, Saudi Arabia yesterday, with the agreement set to lead to the establishment of a fund that will allocate to casualty insurance-related securities, and with a target size of $100 million.

Khalid Al Ghamdi, CEO of ANB Capital commented, “We are excited to conclude this partnership with Ledger Investing to develop and launch this innovative product for our investors, and this partnership is in line with our commitment to provide our investors with access to promising and unique investment opportunities with the possibility of achieving rewarding returns.”

ANB Capital and Ledger Investing will collaborate closely on product development and structuring of this casualty ILS fund, leveraging Ledger’s expertise in technology and ILS, as well as ANB’s expertise in the Saudi investment market.

The product is designed to provide Saudi investors with access to a new asset class, and ANB Capital said it will complement their existing suite of investment products.

Samir Shah, CEO of Ledger Investing, also said, “We are delighted to be working with ANB Capital to introduce this important new product to the Saudi market.

“Our partnership demonstrates our commitment to innovation and our ability to collaborate globally to develop new investment opportunities.”

It’s good to see the interest in ILS from a Saudi Arabia based institution like ANB Capital, an institution that offers a range of securities and brokerage services, as well as investment management and the offering of investment funds to its clients.

The institution clearly feels there will be investor appetite in Saudi Arabia for the insurance-linked returns possible from casualty ILS, and this will help to increase the knowledge of ILS in a market that for many in the space is relatively untapped to-date.

The arrangement will also help to boost the assets under management of Ledger ILS Managers, LLC, the dedicated investment manager arm of the company, we assume.