Northern Re unveils $100 million capital raise, eyes $500 million GWP in 2025

By Rebecca Delaney

April 29 - (The Insurer) - Collateralised reinsurer Northern Re has secured an additional $100 million in committed capital from new and existing institutional investors, the company said on Tuesday.

The latest capital raise takes Northern Re's total capitalisation to $175 million.

Northern Re said the new funding will be deployed to strengthen unencumbered surplus and collateral positions to enable the scaling of its operations while maintaining financial strength.

Northern Re bifurcates its capital stack into a collateral pool, which it uses to fund its obligations, and a surplus pool of unencumbered capital that sits in reserve.

The company posts collateral in cash rather than relying on letters of credit, a factor it says makes it unique in the ILS sector.

With the expanded capital base, Northern Re said it expects to write in excess of $500 million of gross premium during 2025, investing behind a diversified portfolio of U.S. and global carriers across casualty lines.

It continues to focus on the casualty ILS market with traction among program and traditional writers, particularly through structured quota shares.

Northern Re was established in the Cayman Islands in 2022 as a collateralised reinsurer by brothers Anthony and Peter McKelvy.

The company initially launched with $25 million in capital from private investors and raised a further $50 million in November 2023.