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 agreement marks a significant milestone for the company less than a year after receiving 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.
"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," said Tolga Uzuner, Co-Founder and Chief Executive Officer of Verdant Rock Limited.
The reinsurance treaty provides additional security behind each financial guarantee issued by Verdant Rock. This is particularly important for the company's target clients—banks, insurers, and institutional investors—who rely on such guarantees to qualify as eligible credit protection under Basel and major insurance solvency regimes. The A+ average rating of the reinsurance panel enhances the credibility and effectiveness of these guarantees.
Verdant Rock currently holds a BBB+ Long-Term Insurer Financial Strength Rating with a Stable Outlook from Fitch Ratings. The addition of a reinsurance panel with an average A+ rating from AM Best or S&P may positively influence future rating assessments and provides an extra layer of financial strength. This can improve the company's ability to write new guarantees and expand its capacity in emerging markets.
The move also signals confidence in Verdant Rock's business model and underwriting discipline. By securing such a panel early in its development, the company demonstrates to regulators, investors, and clients that it can attract top-tier reinsurance partners. This can facilitate further growth and potentially lead to more favorable terms in future transactions.
For the emerging market private credit sector, this development means that more investment-grade financial guarantees may become available, supported by highly rated reinsurance. This could help mobilize capital into emerging market corporate and project finance, where such credit enhancement is often needed to meet regulatory capital requirements. The treaty deepens the security behind each guarantee, which may encourage more institutional investors to participate in these markets.
As Verdant Rock issues new guarantees, the reinsurance treaty unlocks capacity for future growth. The company's focus on private liabilities—excluding sovereigns, municipalities, or provinces—remains unchanged, but its enhanced risk-sharing arrangement positions it to scale its operations more effectively. This is a notable step for a young insurer and could set a precedent for other guarantors targeting 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. 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.
