Northern Re announces new raise

Northern Re, a Cayman Islands collateralized reinsurance company, has tripled its committed capital by securing an additional $50 million of funding, bringing the total committed capital to $75 million. The company has a target to have over $100 million of committed capital for 2024.

Northern Re deploys capacity via what it refers to as a hybrid approach to the traditional collateral model, bifurcating the capital stack into company surplus, as well as risk capital, and holding that risk capital as Schedule F collateral in a trust account, for the benefit of its carrier partners.

Northern Re, which was established earlier this year by brothers Anthony and Peter McKelvy, already counts as partners “several of the most sophisticated MGAs and largest fronting insurers in the market,” including many who were “critical to the development of the platform.” Beyond the MGA segment, the company has also supported mutual and regional insurance company opportunities.