Cyber insurtech Coalition launches $300mn-backed reinsurer

Cyber insurtech Coalition has launched Ferian Re, an independent reinsurer backed by $300mn from investors that will provide capacity for its programmes.

Cyber insurance and cybersecurity insurtech Coalition has launched an independent Class 3B reinsurer called Ferian Re to help provide it capacity across its cyber programmes.

The Bermuda-based reinsurer is backed by approximately US$300mn from an investor group led by funds managed by BTC Capital Partners, alongside minority investors including The Pritzker Organization.

Ferian Re will also participate in Coalition’s cyber insurance programmes alongside leading insurers and reinsurers such as Swiss Re, Arch Insurance and Allianz, with which it forged a new strategic partnership to provide additional capacity as recently as July.

It is the latest leap forward for the company founded in 2017. In July, it announced a US$250mn investment round which boosted its valuation to US$5bn. At the beginning of August, it appointed former Visa SVP Jim Young as its first ever Chief Financial Officer, marking a significant moment in the firm’s accelerated growth, and Coalition acquired P&C insurer Digital Affect from Munich Re later in the month.

‘Growth of cyber insurance outpacing reinsurance supply’

Coalition Founder and CEO Joshua Motta says: "The rapid growth of the cyber insurance industry has outpaced the supply of reinsurance capital. We're excited for Ferian Re to bring alternative capital to the market and introduce a reinsurer with deep expertise in cyber. Our partnership with BDT Capital Partners and other strategic, long-term investors will help address this supply and demand imbalance and support our long-term growth ambitions."

Dan Jester, President and Co-Chief Investment Officer at BDT Capital Partners, adds: "Coalition has pioneered a new model of risk management with ‘active insurance’, which has resulted in continued strong performance and market-leading loss ratios. With the formation of Ferian Re, we are excited to provide a tailor-made capital solution to support Coalition as it scales to be one of the largest cyber insurance providers globally. This investment reflects BDT's differentiated focus on providing patient capital to family- and founder-led companies to support their long-term success."

The launch may prove timely to the market, with the threat of cyberattacks not easing. Hybrid working and the Russian invasion of Ukraine both present additional cyber threats to businesses, at a time when many can afford it the least. Amid rising rates and high levels of inflation, market research company GlobalData has warned that smaller businesses risk being priced out of cyber insurance altogether.


Featured Articles

Insurtech unicorn bolttech takes on extra $50m in funding

Insurtech unicorn bolttech has taken on an extra US$50m in funding from Leapfrog Investments as part of the insurtech's Series B extension

Allianz wants to 'lead by example' with new net-zero targets

Allianz has said it wants to "lead by example" after announcing ambitious new targets to make its investment and underwriting portfolios net zero

Insurtech pricing solution Akur8 seals $25m in fresh funding

Akur8, whose insurtech solution is used by actuaries to build pricing models across all insurance lines, has received backing from Guidewire and FinTLV

Beazley launches tornado parametric insurance using NWS data


Alex Dalyac: Founding AI-based insurtech Tractable

Technology & AI

Saudi Arabia: 'solid' framework to guide insurtech sector