28 February 2023Insurance

HSCM unveils new insurance credit strategy with $400m initial capital

Re/insurer  Hudson Structured Capital Management, conducting its insurance business as HSCM Bermuda, has launched a new venture dedicated to sourcing and investing in insurance debt with $400 million of initial capital commitment from Security Benefit Life Insurance Company.

The HSCM Insurance Credit 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 (Pictured), in addition to her role as partner and deputy chief investment officer, HCSM Bermuda, has been named chief investment officer of the new strategy.

As the strategy expands HSCM Bermuda’s presence, it will 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 believe that insurance debt continues to achieve an attractive risk premium due to the complexity of the investment,” said Bardon. “I am thrilled to be spearheading our continued growth in high quality debt for insurance related enterprises.”

“We are delighted to be expanding our partnership with Security Benefit,” added 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.”

Joseph Wittrock, chief investment officer for Security Benefit, said: “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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