Vesttoo has entered a partnership with Clear Blue Insurance Group to deploy $1 billion in reinsurance capacity to Clear Blue’s P&C lines over the next year. The capacity will be sourced from the capital markets through a variety of insurance-linked assets.
Vesttoo, a leading insurance risk transfer platform, announced today that it had signed a partnership agreement with Clear Blue to supply the latter with reinsurance capacity sourced from capital markets investors, totaling a sum of $1 billion USD.
The partnership is part of Vesttoo’s vision to bridge the gap between the insurance and capital markets, scaling insurance-linked investments as a source for reinsurance capacity. In addition to its AI-powered technology and expertise in fintech, insurance and asset management, Vesttoo will utilize Clear Blue’s underwriting, program management, data and analytical capabilities to facilitate faster reinsurance transactions and allow for more investors to gain access to a diversified portfolio of Clear Blue’s P&C risk, on an efficiently collateralized basis.
“Clear Blue are as data-driven as we are, and together we can grow the pot efficiently,” said Alon Lifshitz, Chief Financial Engineer and Co-Founder of Vesttoo. “We will use Clear Blue’s data in our models to help structure transactions with much faster time to market, all the while maintaining transparency which is critical to investors, leading to greater participation in the insurance-linked investment market.”
“We’ve been working with Vesttoo for years, and their methodology has proven itself time and again,” said Jerome Breslin, President and CEO of Clear Blue Insurance. “Their data-driven process is able to radically speed up the reinsurance process, allowing us to provide insurers with the capacity they need to thrive.”
Vesttoo has scaled rapidly over its years of operation, providing reinsurance capacity to cedents using its data-driven AI technology, which allows it to model, price, and structure flexible solutions for a diversified range of business lines. Vesttoo’s data-driven technologies enable the company to structure transactions in various financial instruments with a fast time to market and increased risk transparency.
Vesttoo plans to expand its coverage to more perils in the Life and P&C sectors. In addition, it is working on digitilizing the transaction-making process, enabling it to work at greater scales. The deal with Clear Blue is an important step towards this broader goal.
Vesttoo connects the insurance industry and the capital markets by combining AI-powered technology with expertise in fintech, insurance, and asset management so that insurers have the capacity they need, and investors have opportunities to diversify with uncorrelated, low volatility insurance-linked assets. Among Vestoo’s partners are well-established global insurers, financial institutions, and large multinational brokers.
About Clear Blue Insurance Group
The Clear Blue Insurance Group is a property and casualty insurance group providing insurance programs nationwide in partnership with MGAs / program administrators and reinsurers across the world. Clear Blue specializes in a wide variety of commercial and personal lines coverages through its admitted lines and E&S carriers. The Clear Blue group consists of four P&C insurance companies group rated A – (Excellent) by A.M. Best: Clear Blue Insurance Company, Clear Blue Specialty Insurance Company, Highlander Specialty Insurance Company, and Rock Ridge Insurance Company.