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, marking a significant milestone for the young company.
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 risk to highly rated reinsurers, Verdant Rock enhances its balance sheet, diversifies its capital base, and improves scalability for future growth. The company currently holds a BBB+ Long-Term Insurer Financial Strength Rating with a Stable Outlook from Fitch Ratings.
This reinsurance arrangement matters because it adds an extra layer of security behind every guarantee Verdant Rock issues. The participation of reinsurers with an average A+ rating signals strong confidence in Verdant Rock's underwriting framework and governance. "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," said Tolga Uzuner, Co-Founder and Chief Executive Officer of Verdant Rock Limited. "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."
The implications extend beyond Verdant Rock. The company provides Basel and ICS-family Solvency regimes compliant, investment-grade financial guarantees on private credit exposures in emerging markets. These guarantees are designed to qualify as eligible credit protection under Basel and major insurance solvency regimes for banks, insurers and institutional investors globally. By expanding its capacity, Verdant Rock can support more emerging market corporations and banks, structured financings, asset-backed (ABS) and mortgage-backed (MBS) exposures, and project finance deals. This can help unlock capital for underserved markets, where access to credit protection is often limited.
The treaty also demonstrates the attractiveness of Verdant Rock's business model to top-tier reinsurers. It diversifies the company's capital base and provides a foundation for scaling operations. As emerging markets continue to require sophisticated risk mitigation tools, Verdant Rock's strengthened position could make it a more competitive player in the financial guarantee space. The company's focus on private liabilities, excluding sovereigns, municipalities, and provinces, further differentiates its offering.
For more information about Verdant Rock and its services, visit https://verdantrock.com. The reinsurance treaty is effective immediately, though specific terms were not disclosed. Verdant Rock undertakes no obligation to update forward-looking statements.
