IQUW gets $170m debt raise backed by Hudson Structured and Kilter Finance
Hudson Structured Capital Management Ltd. (HSCM), a reinsurance, insurtech, insurance-linked securities (ILS) and transportation focused investment manager, and Kilter Finance, an insurance-focused specialty financing company, have backed a $170 million debt raise for re/insurer IQUW as it continues to build-out its Bermuda platform.
IQUW underwrites its global specialty insurance and reinsurance business through Lloyd’s Syndicate 1856 and also has a Bermuda based reinsurer IQUW Re, which writes a whole account quota share of the group’s Lloyd’s corporate member and is expected to also write some third-party reinsurance business over time.
IQUW announced receiving an A- rating from global credit rating agency AM Best, which the rating agency noted is for IQUW Re Bermuda Limited.
At the same time, the rating agency assigned a Long-Term Issue Credit Rating of “bbb-” (Good) to $170 million of senior unsecured notes issued by IQUW, which are due 2035.
IQUW said that the $170m of senior debt was backed by funds and accounts managed or advised by Hudson Structured Capital Management Ltd. (conducting its re/insurance business as HSCM Bermuda), as well as investors associated with Kilter Finance.
Howden Capital Markets & Advisory acted as the financial advisors to IQUW for this debt issue.
AM Best noted that IQUW’s risk-adjusted capitalisation benefits from this recent debt raise.
While IQUW noted that the new rating for IQUW Re, provides it with, “broader ability to serve clients and brokers worldwide, utilising Group capital of over $1 billion.”
IQUW sees the rating as a milestone in its evolution as it, “looks to expand its third-party reinsurance business from its Bermuda platform.”
Stephen Young, CEO of IQUW Bermuda said, “I am incredibly proud of the IQUW team and all the work that has led us to this milestone. Over the last three years, we have built an experienced team and embedded new operational capabilities in Bermuda from the ground up. This rating and Bermuda balance sheet will strengthen IQUW’s relevance in the market and support the next stage of IQUW’s growth strategy.”
“The rating enhances our ability to write third-party business from Bermuda, which will provide IQUW with the flexibility to react to market conditions and expand in line with our risk appetite.”
Peter Bilsby, IQUW Group Chief Executive Officer, added, “Securing an A- AM Best rating is a significant endorsement of IQUW’s financial strength and our capability to support clients on a global scale.”
“As a Bermuda based company, this rating allows us to expand alongside Lloyd’s. Our Bermudian platform is complementary to our Lloyd’s presence and will enable us to continue to responsibly grow the business through both locations.
“IQUW’s strong foundation has been delivered through excellent market collaboration and our vision of intelligent underwriting. That vision combines data and technology with human expertise to deliver insightful and fast responses to our clients and brokers – an approach that has seen us named by Gracechurch as delivering Outstanding Underwriting service – and one that provides us with a blueprint to continue to develop in Bermuda.”
Hudson Structured and Kilter Finance continue to demonstrate their appetite to support financings for growth companies in the global insurance and reinsurance sector, securing attractive returns for their investors through support of IQUW’s debt raise.
