Verdant Rock Limited, a Bermuda-based Class 3B insurer and financial guarantor focused on emerging markets, has closed a 30% quota share reinsurance treaty with a panel of global reinsurers. The panel holds an average financial strength rating of A+ from either AM Best or S&P. This agreement comes less than a year after Verdant Rock received its Class 3B insurance license from the Bermuda Monetary Authority and marks a significant step in strengthening the company's balance sheet and capacity for future growth.
The treaty covers Verdant Rock's portfolio of irrevocable, unconditional and on-demand financial guarantees on private corporate, structured and project finance exposures across emerging markets. By ceding 30% of its risk to highly rated reinsurers, Verdant Rock not only diversifies its capital base but also enhances the security behind each guarantee it issues. This additional layer of security from A+ rated counterparties is expected to bolster confidence among banks, insurers and institutional investors that rely on Verdant Rock's guarantees to comply with Basel and ICS-family solvency regimes.
Tolga Uzuner, Co-Founder and Chief Executive Officer of Verdant Rock, commented, "Securing a reinsurance panel of this caliber, rated A+ on average, at this stage of our development is a strong validation of our underwriting framework and our approach to governance. Every guarantee Verdant Rock issues now carries an additional layer of security from counterparties that have spent time understanding and believing in what we are building. We are grateful to each panel member for their confidence in us."
The reinsurance treaty is a strategic milestone for Verdant Rock, which holds a BBB+ Long-Term Insurer Financial Strength Rating with a Stable Outlook from Fitch Ratings. The company provides investment-grade financial guarantees on private credit exposures in emerging markets, designed to qualify as eligible credit protection under major regulatory frameworks. Its focus on private liabilities excludes sovereigns, municipalities and provinces, covering instead bonds and loans issued by emerging market corporations and banks, structured financings, asset-backed (ABS) and mortgage-backed (MBS) exposures, and project finance.
This announcement underscores the growing importance of private sector solutions in emerging markets, where access to credit protection can be limited. By partnering with A+ rated reinsurers, Verdant Rock enhances its ability to scale its guarantee capacity, potentially unlocking more financing for private projects and corporations in these regions. The move also signals confidence in Verdant Rock's underwriting and governance from established global reinsurers, which could attract further capital and partnerships.
For more information on Verdant Rock and its offerings, visit their website at https://verdantrock.com. The company's approach aligns with regulatory requirements, and its guarantees are structured to be compliant with Basel and ICS-family Solvency regimes, making them attractive to institutional investors seeking eligible credit protection. As emerging markets continue to evolve, such reinsurance agreements could play a critical role in bridging financing gaps and supporting sustainable economic development.
