Ledger Investing combines forces with Fermat and expands casualty ILS capabilities

Providing a strong signal for the future potential of the casualty insurance-linked securities (ILS) marketplace, insurtech and casualty ILS company Ledger Investing has entered into an agreement with leading ILS investment manager Fermat Capital Management, who will now manage the casualty ILS funds Ledger had created.

Fermat Capital Management has established its own casualty ILS team, as the company that has historically been better-known for its catastrophe bond focus looks to expand its range of insurance-linked offerings.

Artemis has learned that Michael Leybov, a former employee of Allianz Risk Transfer and before that a finite and financial reinsurance specialist with broker Willis Re, has joined Fermat this year to lead that new casualty ILS team and build out the casualty business at the ILS investment manager.

Ledger Investing has expanded its casualty ILS capabilities with the launch of two new Cayman Islands domiciled subsidiaries, the company announced today.

Ledger Re SPC has been established as a reinsurance company to provide institutional investors with access to casualty ILS opportunities.

In addition to which, Ledger ILS Services has been formed, to be the firm’s provider of underwriting and risk management services.

The technology focused company, that leverages advanced data science modelling to help it price and structure casualty ILS investment opportunities, said that “the formation of these business segments further cements its leading role in helping managing general agents (MGAs) and (re)insurers source capital in the ILS market.”

In addition, Ledger Investing also announced that the casualty ILS funds it had established and been managing will now be managed by the casualty team at Fermat Capital Management.

This combination will see Fermat’s extensive experience in ILS asset management brought together with the Ledger Investing expertise in casualty ILS.

Ledger will continue to provide support services for the underlying casualty ILS investments within the funds.

“These milestones are a pivotal moment in the growth of the casualty ILS market,” Samir Shah, CEO of Ledger Investing said. “Our creation of Ledger Re SPC as a conduit to the ILS markets and the entry of Fermat mark major steps toward realizing the massive, trillion-dollar potential in casualty ILS, which remains a largely untapped asset class consistently delivering attractive and uncorrelated risk-adjusted yield.”

John Seo, Managing Director and Co-Founder of Fermat, added, “Fermat continues to see growing investor appetite for alternative fixed income investments.

“Given the portfolio diversification benefits of casualty ILS, we anticipate broad investor interest, ranging from pension plans seeking income to private credit managers looking for diversification.”

Ledger investing has cemented a position as a leading access point to the capital markets and ILS investors for casualty reinsurance capacity to support insurers, reinsurers and MGA’s.

Today’s announcements see Ledger continuing to build-out its specialist service offerings, while at the same time promoting growth in casualty ILS and enabling new investors to access this growing alternative asset class.