Accelerant has launched a US$175mn investment sidecar vehicle called Flywheel Re, which it says will support its underwriting capacity and performance.
Flywheel will provide multi-year risk capital to Accelerant and its cadre of underwriting-led specialist members. The insurtech platform, which was founded in 2018, empowers underwriters with risk exchange and data analytics, coupled with long-term capacity commitments. .
Accelerant says Flywheel’s long-term structure is “starkly different” from typical historical catastrophe-focused sidecars, an approach that “continues to distinguish Accelerant as an innovator in driving better outcomes across the insurance industry”.
Flywheel ‘a natural extension’ of Accelerant’s work to date
“We’re thrilled to launch Flywheel and put it to work on behalf of our members,” says Jeff Radke, CEO and Co-founder of Accelerant. “This is a natural extension of the work we’ve been doing to support specialist underwriters with additional capacity. But it also marks a major milestone in our journey as a company, and for the insurance industry at large.
“We are now expanding our focus and diversifying sources of capital alongside the traditional reinsurance market by bringing our portfolio of low-volatility commercial SME risks to institutional investors in an innovative structure that efficiently supports our members’ growth.”
Earlier this year, UK-based Accelerant raised more than US$190mn at a pre-money valuation of US$2bn. The investment was led by Eldridge with participation from the likes of Deer Park, Marshall Wace and MS&AD Ventures. At the time, Accelerant said it would use the money to further its mission of rebuilding the way that underwriters share and exchange risk, improving outcomes for programme managers, primary issuing carriers and ultimate risk-bearers.
As part of its continued expansion, Accelerant opened a European headquarters based in Brussels – the latest chapter in its near-five year success story, allowing it to trade within the EU. Hailing the opening of the new office, CEO Jeff Radke said Accelerant had been “blown away by demand” for its services since launching in Europe.