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 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. The treaty marks a significant milestone for Verdant Rock, coming less than a year after it received its Class 3B insurance license from the Bermuda Monetary Authority.
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 move is particularly important for the company's clients and counterparties, as every guarantee Verdant Rock issues now carries an additional layer of security from reinsurers with strong financial strength ratings.
"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 Chief Executive Officer 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."
The reinsurance treaty is expected to have broader implications for the emerging market financial guarantee space. Verdant Rock provides Basel and ICS-family Solvency regimes compliant, investment-grade financial guarantees on private credit exposures in emerging markets, designed to qualify as eligible credit protection under Basel and major insurance solvency regimes for banks, insurers and institutional investors globally. 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.
For readers and industry participants, this development signals increased capacity and security in a niche but critical segment of the financial markets. By partnering with A+ rated reinsurers, Verdant Rock enhances its ability to support private credit exposures in emerging markets, which often face higher perceived risks. This could lead to more available and affordable credit protection for banks, insurers and institutional investors operating in these regions. The treaty also underscores the growing role of specialized insurers like Verdant Rock in bridging gaps left by traditional guarantors.
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 as a Class 3B Insurer. The announcement is for information only and not an offer or solicitation to buy or sell any security, insurance product, or financial guarantee. 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.
