Hudson Structured Capital Management Ltd. (HSCM), the reinsurance, insurtech, insurance-linked securities (ILS) and transportation focused investment manager, has launched HSCM Insurance Credit Strategy, which will seek to originate and invest in medium-to long-term debt issued by insurers, reinsurers, and re/insurance distribution and service companies.
Coinciding with the launch of the new strategy, Kansas-based insurer Security Benefit Life Insurance Company (SBL) has committed $400 million of initial capital to HSCM Bermuda, the reinsurance and ILS related investment arm of the investment manager, for the credit strategy.
Rachel Bardon has been appointed as Chief Investment Officer of HSCM Insurance Credit Strategy, in addition to her role as Partner and Deputy Chief Investment Officer of HSCM Bermuda.
“We believe that insurance debt continues to achieve an attractive risk premium due to the complexity of the investment. I am thrilled to be spearheading our continued growth in high quality debt for insurance related enterprises,” said Bardon.
As we’ve covered on Artemis, HSCM Bermuda has established diversified sourcing capabilities across numerous lines of business, worked with top tier credit issuers and has a proven track record of both reliable and efficient execution.
It’s expected that the new strategy will expand the presence of HSCM Bermuda, enabling the firm to build on its track record to offer financing solutions for small-to medium-sized insurers underserved by traditional financing channels.
Michael Millette, Managing Partner of HSCM Bermuda, commented: “We are delighted to be expanding our partnership with Security Benefit. We have collaborated successfully across life insurance in the past and are excited to continue to work with the team on Insurance Credit.”
Joseph Wittrock, Chief Investment Officer for Security Benefit, added: “We look forward to continuing and growing our relationship with HSCM Bermuda. HSCM Bermuda’s debt sourcing capabilities across the insurance industry will complement our existing origination capabilities and present us with new investment opportunities to build on our industry leading returns.”
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