Verdant Rock Limited, a Bermuda-based Class 3B insurer and financial guarantor, has closed a 30% quota share reinsurance treaty with a panel of global reinsurers. The panel carries an average financial strength rating of A+ from either AM Best or S&P, according to the company's announcement. This treaty, completed less than a year after Verdant Rock received its Class 3B insurance license from the Bermuda Monetary Authority, marks a significant step in strengthening the security behind the guarantees it issues.
The reinsurance 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, Verdant Rock enhances its balance sheet, diversifies its capital base, and unlocks capacity for future growth. This additional layer of security from A+ rated counterparties is expected to bolster confidence among banks, insurers, and institutional investors that rely on Verdant Rock's guarantees as eligible credit protection under Basel and major insurance solvency regimes.
"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 CEO 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."
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 and mortgage-backed exposures, and project finance.
This development matters because it demonstrates that a relatively new entrant can attract top-tier reinsurance partners, which may improve the availability and affordability of credit protection for emerging market borrowers. By sharing risk with A+ rated reinsurers, Verdant Rock can potentially increase its underwriting capacity, enabling more private sector projects and infrastructure investments in regions where such support is often scarce. The treaty also signals growing institutional confidence in emerging market private credit, which could encourage other insurers and investors to allocate capital to these markets.
The reinsurance panel's average A+ rating from AM Best or S&P provides an extra cushion for policyholders and beneficiaries. As Verdant Rock scales its operations, the strengthened capital base may allow it to support larger and more complex transactions, contributing to economic development in emerging economies. However, the company notes that this announcement is for information only and not an offer or solicitation to buy or sell any security. Forward-looking statements are not guarantees of future results. 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.
