Israel-based alternative reinsurance and investment platform Vesttoo has landed $15m in Series B equity investment from Mouro Capital.
Also participating in the round was MS&AD Ventures, the corporate venture capital fund of Japan-based MS&AD Insurance Group Holdings, the fifth largest insurance conglomerate in the world.
The Series B round, which comes just three months after Hanaco Ventures led the company’s Series A round, will drive expansion of Vesttoo’s Insurance-Linked Program (ILP) offering, an innovative security-based investment portfolio, as well as the world’s first fully digital marketplace for insurance-based risk transfer and investments. Vesttoo said both are integral to its business strategy, aimed at bridging the funding gap in the reinsurance market.
Vesttoo’s ILP investment portfolio is focused on fully collateralised Life and P&C reinsurance transactions. Through the ILP program, investors can pledge existing securities as collateral in these transactions, earning additional spreads over current yields (long-term, structured alpha), without increasing their risk profile.
The Vesttoo marketplace provides insurers with access to capital market originated capacity. Investors, on the other hand, benefit from direct access to a new asset class comprised of low volatility insurance risks and attractive risk reward.
Yaniv Bertele, CEO of Vesttoo, said, “Mouro Capital and MS&AD see the same opportunity we see: Vesttoo’s marketplace as a global deal pipeline that drives capacity directly from the capital markets to insurers, while delivering exceptional return on risk to investors by opening up this new asset class.”
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