Limit Financial (LimitFi), a managing general underwriter (MGU) that specialises in credit insurance and reinsurance solutions, has announced today it has closed a seed funding round led by ManchesterStory, a venture capital firm in the insurtech industry.
Inefficiencies in the credit insurance market
Zach Smith, Co-Founder of LimitFi, added: “LimitFi’s platform leverages our collective experience in insurance, credit, investment management, and capital markets through multiple credit cycles. We would like to thank ManchesterStory for the support as we build the business. We look forward to working together in the years to come”.
Adam Budnick, Co-Founder of LimitFi, said: “Zach and I identified key inefficiencies in the credit markets which make it difficult for (re)insurers to access desired exposures in a cost-effective manner. The successful close of our seed round is confirmation that our approach to addressing those market deficiencies is resonating with the insurance and reinsurance communities”.
As a company, LimitFi primarily focuses on structured credit risks where capital market solutions are needed, and risk is sourced and evaluated through brokers and insurers, asset managers, lenders, and banks.
David Miles, Founding Partner of ManchesterStory, said: “The operational capital provided in this seed round will help LimitFi continue to build out the company’s team and push forward product development. LimitFi provides products and services which have been needed in the (re)insurance sector for some time, and ManchesterStory is pleased to be a part of their journey”.
LimitFi’s services and technology link financial services providers, including banks, lenders, and asset managers, to partners in the insurance ecosystem while the company’s outsourced underwriting model is designed to promote better risk decisions and more diversified exposures.
