HSCM Bermuda Launches Insurance Credit Strategy with $400 Million Capital Commitment from Security Benefit
March 1, 2023 by HSCM
STAMFORD, Conn.–(BUSINESS WIRE)–Hudson Structured Capital Management Ltd. – conducting its insurance business as HSCM Bermuda (“HSCM Bermuda”) – today announced its launch of the HSCM Insurance Credit Strategy (the “Strategy”). Concurrent with its launch, Security Benefit Life Insurance Company (“SBL”) has, subject to certain conditions, committed $400 million of initial capital to HSCM Bermuda for the Strategy.
The Strategy will seek to originate and invest in medium- to long-term debt issued by insurance companies, reinsurance companies, and re/insurance distribution & service companies. Rachel Bardon, in addition to her role as Partner and Deputy Chief Investment Officer – HCSM Bermuda, has been named Chief Investment Officer of the Strategy.
“We believe that insurance debt continues to achieve an attractive risk premium due to the complexity of the investment,” commented Bardon. “I am thrilled to be spearheading our continued growth in high quality debt for insurance related enterprises.”
Over the past six years, HSCM Bermuda has built diversified sourcing capabilities across lines of business, worked with top tier credit issuers in P&C and life businesses, and has demonstrated a proven track record of reliable and efficient execution. As the Strategy expands HSCM Bermuda’s presence, it will build on this track record to offer financing solutions for small- to medium-sized insurance companies under-served by traditional financing channels due to balance sheet nuances, a capital-intensive business models and difficult regulatory capital structures.
“We are delighted to be expanding our partnership with Security Benefit,” said Michael Millette, Managing Partner of HSCM Bermuda. “We have collaborated successfully across life insurance in the past and are excited to continue to work with the team on Insurance Credit.”
“We look forward to continuing and growing our relationship with HSCM Bermuda,” said Joseph Wittrock, Chief Investment Officer for Security Benefit. “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.”
About Hudson Structured Capital Management Ltd.
Hudson Structured Capital Management Ltd. is an asset manager focused on alternative investments seeking mezzanine level returns. HSCM focuses on the Re/Insurance and Transportation sectors. HSCM launched in 2016 and focuses on core economic sectors that are likely to outgrow global GDP, offer low correlations with broader markets, and are experiencing a shift from balance sheet and to market financing. For more information, please visit www.hscm.com.
Security Benefit Corporation (“Security Benefit”), through its subsidiary Security Benefit Life Insurance Company (SBL), a Kansas-based insurance company that has been in business for more than 131 years, is a leader in the U.S. retirement market. Security Benefit together with its affiliates offers products in a full range of retirement markets and wealth segments for employers and individuals and held $47.8 billion in assets under management as of December 31, 2022. Security Benefit, an Eldridge business, continues its mission of helping Americans To and Through Retirement®. Learn more at www.securitybenefit.com and follow us on LinkedIn, Facebook or Twitter.