Martello Re closes second round of equity funding exceeding $900 million

Martello Re closes second round of equity funding exceeding $900 million | Insurance Business Australia

Reinsurance

Martello Re closes second round of equity funding exceeding $900 million

Reinsurer has also upsized its current credit facility

Reinsurance

By
Kenneth Araullo

Martello Re has announced the successful closing of a second round of equity funding, raising $935 million in equity commitments from existing and new shareholders. This amount surpasses the initial $800 million target set at the launch of the capital raise.

Additionally, Martello Re has increased its current credit facility by $360 million, adding four new banks to its lender group. Combined with the company’s existing equity and credit facility capacity, this brings total drawn and undrawn capital at Martello Re to approximately $3.6 billion.

Dennis Ho (pictured above), chief executive officer of Martello Re, described this achievement as a significant milestone for the company.

“Since launching a little over two years ago, Martello Re has grown rapidly to more than 70 employees and over $23 billion in assets under management. Today, we are one of the largest asset-intensive reinsurers in the industry and can offer insurers a reinsurance partner with industry-leading underwriting, risk management, and asset management capabilities,” Ho said.

Ho also acknowledged the crucial support from founders MassMutual, Barings, Centerbridge Partners, and Brown Brothers Harriman, as well as the dedication of the company’s employees.

“Our company is excited to continue the execution of our long-term strategy of providing life and annuity insurers with a financially strong reinsurance partner that is dedicated to helping them grow their most important business lines,” he said.

The capital raised will support Martello Re’s existing cedants and enable the company to provide reinsurance support to additional cedant partners in the coming years. It will also allow for selective expansion into new business lines and geographies over time.

Martello Re said that its strategy is to continue to emphasize maintaining exceptional financial strength, prudent risk management, and fostering long-term partnerships with top insurers in the industry.

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