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 development comes less than a year after Verdant Rock received its Class 3B insurance license from the Bermuda Monetary Authority, marking a significant milestone for the company.
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 important because it allows Verdant Rock to issue more guarantees while maintaining a strong financial position, which is crucial for gaining the trust of institutional investors and counterparties in emerging markets.
"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."—Tolga Uzuner, Co-Founder, Chief Executive Officer, Verdant Rock Limited
The implications of this announcement extend beyond Verdant Rock. In emerging markets, access to reliable financial guarantees can be a critical factor in mobilizing private capital for infrastructure, corporate expansion, and structured finance. With the backing of A+ rated reinsurers, Verdant Rock's guarantees are more likely to qualify as eligible credit protection under Basel and major insurance solvency regimes, making them attractive to banks, insurers, and institutional investors globally. This can help unlock lending and investment that might otherwise be constrained by perceived risks. 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. By expanding its capacity, Verdant Rock is positioned to play a larger role in bridging financing gaps in these regions.
The treaty also underscores the growing interest of global reinsurers in emerging market credit risk when structured with robust guarantees. Verdant Rock currently holds a BBB+ Long-Term Insurer Financial Strength Rating with a Stable Outlook from Fitch Ratings. The reinsurance panel's A+ average rating provides an additional layer of security, potentially enhancing the company's ability to compete for mandates that require high-rated counterparties. As emerging markets continue to seek sustainable financing solutions, Verdant Rock's enhanced capacity could contribute to economic development by enabling more projects to reach financial close. However, the company notes that this 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, and Verdant Rock undertakes no obligation to update them. 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.
