Ledger surpasses $2bn casualty insurance-linked securities (ILS) placed with investors

Ledger Investing, the insurance technology (insurtech) and insurance-linked securities (ILS) focused company, has now surpassed $2 billion in casualty ILS placements with institutional investors.

Ledger Investing (Ledger) adopts a technology-led approach to making insurance risks investable and has enabled third-party capital providers to back a significant amount in casualty premiums so far, cementing its role as a pioneer in the fast-developing casualty ILS space.

Casualty insurance-linked securities (ILS), as a burgeoning segment of the ILS market, has been receiving increasing attention in 2024.

Ledger commented that its technology and structuring approach is “opening doors to a new era in casualty ILS.”

The company has been seeing rapid uptake of its casualty ILS solutions and investment services this year.

In August, Ledger announced an agreement with ILS manager Fermat Capital Management, which sees that firm managing casualty ILS funds created by Ledger.

Ledger also expanded its casualty ILS capabilities with the launch of two Cayman Islands domiciled subsidiaries, and also the formation of Ledger ILS Services which manages the Cayman casualty ILS platform.

In September, Ledger announced the funding and launch of a new $100 million casualty sidecar for a global reinsurance company.

Also of note, Ledger was the first to develop a secondary market for casualty ILS securities, with its largest deal so far a $250 million syndicated trade.

Having only completed its first transaction in 2019, over the next five years Ledger has made significant progress, taking it to the new milestone of more than $2 billion in casualty ILS placed with investors.

As investor demand for new insurance-linked opportunities continues to expand, while the casualty ILS market is maturing, the future looks bright for this market segment and it is an area of insurance-linked securities (ILS) expected to steadily expand as the sophisticated approaches of market participants unlocks a potentially major source of insurance risk premium for investors.

Given the rising interest and activity in casualty ILS, it is set to be a topic of focus at our upcoming ILS NYC 2025 conference, so register soon if you want to attend and learn more about this innovative growth area of the market.