Coalition, the San Francisco-based cyber insurer and cybersecurity firm, announced the formation of Ferian Re, an independent Bermuda-based Class 3B reinsurer that will provide capacity across Coalition’s cyber programs.

Ferian Re will be capitalized with approximately $300 million from an investor group led by funds managed by BDT Capital Partners LLC, an affiliate of BDT & Co. LLC, a merchant bank that works with family- and founder-led businesses to pursue their strategic and financial objectives. Minority investors include The Pritzker Organization, among other global investors with long-term investment horizons, Coalition said.

In conjunction with its launch, Ferian Re signed a long-term agreement to participate in Coalition’s cyber insurance programs alongside leading global insurers and reinsurers, including Allianz Group, Arch Insurance North America and Swiss Re Corporate Solutions.

“Coalition has pioneered a new model of risk management…, which has resulted in continued strong performance and market-leading loss ratios,” said Dan Jester, president and co-chief investment officer of BDT Capital Partners.

“With the formation of Ferian Re, we are excited to provide a tailor-made capital solution to support Coalition as it scales to be one of the largest cyber insurance providers globally. This investment reflects BDT’s differentiated focus on providing patient capital to family- and founder-led companies to support their long-term success,” Jester added.

“The rapid growth of the cyber insurance industry has outpaced the supply of reinsurance capital. We’re excited for Ferian Re to bring alternative capital to the market and introduce a reinsurer with deep expertise in cyber,” said Joshua Motta, founder and CEO of Coalition. “Our partnership with BDT Capital Partners and other strategic, long-term investors will help address this supply and demand imbalance and support our long-term growth ambitions.”

Coalition, which is a managing general agent and InsurTech, provides both cyber insurance and proactive cybersecurity tools to help businesses manage and mitigate cyber risk. Through its partnerships with global insurers such as Arch Insurance North America, Allianz, Ascot Group, Lloyd’s of London, Swiss Re Corporate Solutions and Vantage, Coalition offers its Active Insurance products in the U.S., UK and Canada, and its security products to organizations worldwide.

Coalition’s Active Risk Platform provides automated security alerts, threat intelligence, expert guidance and cybersecurity tools to help businesses remain resilient in the face of cyber attacks.

Source: Coalition