Israel-based alternative reinsurance and investment platform Vesttoo has raised $6m in a Series A funding round led by Hanaco Ventures.
The round is part of Hanaco’s broader investment strategy in Vesttoo, aimed at further developing Vesttoo’s Insurance-Linked Program (ILP) offering. The company intends to use the funds to further develop its offerings.
Led by Yaniv Bertele, CEO, Vesttoo is a marketplace for non-catastrophe insurance-based risk transfer and investments which provides asset managers with the opportunity to earn additional alpha from existing assets without the need to allocate cash. Its proprietary AI-based technology facilitates risk transfer between insurance companies and institutional investors, providing insurance-linked investments to asset managers of all types, while enhancing risk transfer and liquidity in the Life and P&C insurance markets.
The ILP program offers institutional investors risk remote investments in collateralised reinsurance deals, earning BB spread of AA uncorrelated risk in addition to the yield of their existing assets, with a significant global deal pipeline targeting first closing of $1bn assets under management within 12 months.
Furthermore, Vesttoo’s marketplace will allow insurers, reinsurers and pension funds to model, structure, price and place their offering online, while giving institutional investors direct access to the untapped market of alternative reinsurance and exceptional return on risk.
Both the ILP and the marketplace are novel instruments in the insurance space aimed at increasing liquidity and much-needed capacity in the reinsurance market and facilitating the alternative reinsurance ecosystem, an integral part of Vesttoo’s business strategy to bridge the funding gap in the reinsurance market.
Bertele said, “We have a significant global deal pipeline with insurers from the US, UK and mainland Europe, and are looking forward to further scaling Vesttoo’s ILP and fully digital marketplace with Hanaco’s support.”
Pasha Romanovski, co-founding partner of Hanaco Ventures, comments: “Vesttoo is disrupting the reinsurance industry. The company is building a digital marketplace and has already proven its ability to sign multi-year contracts with leading US and EU insurance and reinsurance providers.”
“Hanaco Ventures chose to invest in Vesttoo because of the unique solution and the company’s impressive founding team who will have a big impact in this untapped sector.”
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