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 the company received its Class 3B insurance license from the Bermuda Monetary Authority.
The treaty covers Verdant Rock's portfolio of irrevocable, unconditional and on-demand financial guarantees on private corporate, structured and project finance exposures across emerging markets. By ceding 30% of risk to highly rated reinsurers, the company strengthens its balance sheet, diversifies its capital base and enhances scalability for future growth. Each guarantee now benefits from an additional layer of security provided by counterparties with strong credit profiles.
Tolga Uzuner, Co-Founder and Chief Executive Officer of Verdant Rock, commented, "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 arrangement matters because 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. The company holds a BBB+ Long-Term Insurer Financial Strength Rating with a Stable Outlook from Fitch Ratings. The new treaty further supports its ability to provide compliant, investment-grade financial guarantees on private credit exposures in emerging markets.
Verdant Rock's focus on private liabilities excludes 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. The reinsurance treaty is expected to unlock additional capacity, allowing Verdant Rock to scale its operations and meet growing demand for credit enhancement in emerging markets.
The announcement is for information only and 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.
For more information on Verdant Rock's regulatory status and offerings, visit https://www.verdantrock.com.
