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. This development comes less than a year after Verdant Rock received its Class 3B insurance license from the Bermuda Monetary Authority, marking a significant milestone for the young 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. This means that every guarantee Verdant Rock issues now carries an additional layer of security from counterparties with strong financial strength ratings.
Securing a reinsurance panel of this caliber at this stage of development is a strong validation of Verdant Rock's underwriting framework and approach to governance. As Tolga Uzuner, Co-Founder and Chief Executive Officer of Verdant Rock Limited, stated, "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. 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 because it enhances the credit quality of Verdant Rock's guarantees, making them more attractive to banks, insurers, and institutional investors seeking eligible credit protection under Basel and major insurance solvency regimes. Verdant Rock provides Basel and ICS-family Solvency regimes compliant, investment-grade financial guarantees on private credit exposures in emerging markets. The company focuses on private liabilities and does not cover sovereigns, municipalities or provinces. Its remit covers 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.
This announcement matters because it demonstrates that Verdant Rock can attract top-tier reinsurance partners despite being a relatively new entrant. The A+ average rating of the panel provides an extra layer of security for policyholders and counterparties, which could lead to increased demand for Verdant Rock's guarantees. Additionally, the treaty diversifies Verdant Rock's capital base and provides capacity for future growth, positioning the company to expand its emerging market footprint. For investors and institutions operating in emerging markets, this means greater access to credit enhancement backed by highly rated reinsurers, potentially facilitating more private financing in these regions.
Verdant Rock currently holds a BBB+ Long-Term Insurer Financial Strength Rating with a Stable Outlook from Fitch Ratings. The company is regulated by the Bermuda Monetary Authority. For more information, visit https://www.verdantrock.com.
