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 leading global reinsurers. The panel carries an average financial strength rating of A+ from either AM Best or S&P, according to the company. The treaty supports Verdant Rock's portfolio of irrevocable, unconditional and on-demand financial guarantees on private corporate, structured and project finance exposures across emerging markets.
By sharing 30% of risk with highly rated capacity providers, Verdant Rock further strengthens its balance sheet, diversifies its capital base and enhances scalability for future growth. The treaty marks a significant milestone for the company less than a year after receiving its Class 3B insurance license from the Bermuda Monetary Authority.
"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. We are grateful to each panel member for their confidence in us."
The reinsurance treaty is important for several reasons. First, it enhances the credit quality of Verdant Rock's guarantees, which are designed to qualify as eligible credit protection under Basel and major insurance solvency regimes for banks, insurers and institutional investors globally. With an additional layer of security from A+ rated reinsurers, the guarantees become more attractive to regulated financial institutions that must hold capital against credit risk. This could facilitate greater lending and investment in emerging markets, where access to credit protection is often limited.
Second, the treaty provides Verdant Rock with increased capacity to write new guarantees. As emerging markets continue to grow, demand for infrastructure and corporate financing is rising. Verdant Rock's ability to share risk with reinsurers allows it to take on larger or more numerous exposures without overburdening its own balance sheet. This scalability is crucial for the company to expand its footprint in regions where political and economic risks can be higher.
Third, the involvement of a panel of leading global reinsurers with an average A+ rating signals confidence in Verdant Rock's underwriting and governance. Less than a year after licensing, the company has demonstrated that it can attract top-tier reinsurance partners. This validation may help Verdant Rock secure further partnerships, attract investors, and compete with established financial guarantors.
Verdant Rock currently holds a BBB+ Long-Term Insurer Financial Strength Rating with a Stable Outlook from Fitch Ratings. The company focuses on private liabilities and does not cover sovereigns, municipalities or provinces. Its remit includes bonds and loans issued by emerging market corporations and banks, structured financings, asset-backed (ABS) and mortgage-backed (MBS) exposures in securities or loan format, and project finance.
The announcement is for information only and is not an offer or solicitation to buy or sell any security, insurance product, or financial guarantee. It is not for distribution in any jurisdiction where to do so would be unlawful. Forward-looking statements are not guarantees of future results, and Verdant Rock undertakes no obligation to update them. A credit rating is not a recommendation to buy, sell or hold any security and may be subject to revision, suspension or withdrawal at any time by the assigning rating agency.
