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 carries an average financial strength rating of A+ from either AM Best or S&P, according to the company's announcement. This agreement comes less than a year after Verdant Rock received its Class 3B insurance license from the Bermuda Monetary Authority, marking a significant milestone for the young company.
The treaty provides reinsurance support for 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 risk to highly rated reinsurers, Verdant Rock strengthens its balance sheet, diversifies its capital base, and enhances scalability for future growth. The company holds a BBB+ Long-Term Insurer Financial Strength Rating with a Stable Outlook from Fitch Ratings, and its guarantees are designed to qualify as eligible credit protection under Basel and major insurance 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 implications of this announcement are significant for several reasons. First, it enhances the credit quality of Verdant Rock's guarantees, which are used by banks, insurers, and institutional investors to manage risk and meet regulatory capital requirements. With reinsurance from A+ rated entities, each guarantee now benefits from an extra layer of security, potentially making them more attractive to counterparties. Second, it allows Verdant Rock to expand its capacity without proportionally increasing its own capital, enabling it to take on more business and support more projects in emerging markets. This is particularly important given the growing demand for infrastructure and private credit in these regions. Third, the involvement of a highly rated reinsurance panel serves as external validation of Verdant Rock's underwriting and governance practices, which could help the company attract additional partners and clients.
For more information about Verdant Rock, visit their website at https://www.verdantrock.com. The company focuses on private liabilities and does not cover sovereigns, municipalities, or provinces. Its remit includes 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 is for information only and is not an offer or solicitation to buy or sell any security, insurance product, or financial guarantee. It is not for distribution in any jurisdiction where to do so would be unlawful. Forward-looking statements are not guarantees of future results, and Verdant Rock undertakes no obligation to update them. A credit rating is not a recommendation to buy, sell, or hold any security and may be subject to revision, suspension, or withdrawal at any time by the assigning rating agency.
