PremFina Secures £350m Facility from HSBC & Waterfall

PremFina has secured a £350m (US$475m) private securitisation facility from HSBC and Waterfall Asset Management to fund its expansion in the UK insurance premium finance market.

The London-based provider plans to deploy the capital to support £1.9bn (US$2.58bn) in premium finance volumes, with £1bn (US$1.36bn) already contracted. SpecFin Capital advised PremFina on the transaction.

The facility represents a shift towards institutional funding for PremFina as it scales operations beyond its current market position. The company reports a client conversion rate exceeding 70% through its technology platform.

Mawgan Harris, Managing Director at HSBC, says the bank is “delighted to support PremFina in this transaction” and that “the facility reflects our continued commitment to backing high-quality UK businesses with scalable and sustainable funding platforms in the specialist finance sector”.

Technology Platform Drives Growth

PremFina's business model centres on its proprietary technology platform, which the company says differentiates it from traditional premium finance providers. 

The platform processes applications and manages client relationships across the insurance intermediary market.

The premium finance sector allows businesses and individuals to spread insurance premium payments across instalments rather than paying annual premiums upfront. PremFina operates primarily through insurance brokers and intermediaries.

The company has expanded its volumes over three years, though it has not disclosed specific growth figures or current loan book size. The new facility provides funding capacity significantly above current requirements.

Sharon Bishop, CEO of PremFina, says the transaction “represents a significant milestone for PremFina and a strong vote of confidence in our people, our investment in technology and our portfolio”.

Institutional Backing

HSBC's participation reflects the bank's strategy in specialist finance sectors. The bank previously backed similar transactions in asset-based lending and alternative finance markets.

Waterfall Asset Management brings US$14.1bn in assets under management to the partnership. The US-based firm focuses on private credit and asset-based lending across multiple sectors.

The facility structure provides PremFina with committed funding lines rather than requiring it to access capital markets repeatedly. This approach offers pricing stability and removes refinancing risk over the facility term.

Market Positioning

The insurance premium finance market in the UK serves commercial clients who prefer to spread large premium payments across monthly instalments. 

Providers typically charge interest rates above traditional bank lending but below alternative finance products.

PremFina competes with established players including Close Brothers Premium Finance and other specialist lenders. The market has attracted new entrants as insurance costs have risen across multiple sectors.

The company targets insurance brokers who offer premium finance as an additional service to their clients. This distribution model allows PremFina to access customers without direct marketing costs.

Market Positioning

The insurance premium finance market in the UK serves commercial clients who prefer to spread large premium payments across monthly instalments. 

Providers typically charge interest rates above traditional bank lending but below alternative finance products.

PremFina competes with established players including Close Brothers Premium Finance and other specialist lenders. The market has attracted new entrants as insurance costs have risen across multiple sectors.

The company targets insurance brokers who offer premium finance as an additional service to their clients. This distribution model allows PremFina to access customers without direct marketing costs.

Krishin Uttamchandani, Director at Waterfall Asset Management UK, says the firm is “excited to partner with PremFina” because “the company's strong underwriting processes, consistent performance, and innovative technology, position it well for continued growth”.

Kandarp Rawal, Managing Director at SpecFin Capital, adds: “We’re thrilled to have supported PremFina on this landmark transaction. 

“The level of investor demand and smooth execution reflect PremFina’s robust business model and the growing institutional appetite for high-quality assets in the insurance premium finance space.”

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