Institutional Underwriting.
Permanent Capital.
Cover Re is a Cayman-domiciled reinsurer delivering rated-quality capacity through a fully collateralized balance sheet. We secure our liabilities with 100% cash and investment-grade assets held in segregated Regulation 114 trusts.
Led by underwriters with experience from top-tier global (re)insurers, we are structured as a long-term partner focusing on building profitable relationships with like-minded insurance companies and MGAs.
Collateral Structure
We prioritize liquidity and credit quality. Liabilities are fully funded with assets held in trust, eliminating the credit risk associated with Letters of Credit (LOCs) or unrated promises to pay.
Regulation 114 Trust Accounts
All ceded liabilities are secured via segregated Regulation 114 Trust Accounts established with top-tier U.S. trustees, including Truist and Computershare. This structure ensures full Schedule F credit for our cedents.
Asset Composition
100% Investment Grade
- High-Quality Liquid Assets: Collateral consists exclusively of USD cash, short-duration U.S. Treasuries, and investment-grade corporate bonds and mortgage-backed securities.
- No Market Risk: We do not invest collateral in equities or alternative assets. Funds are sheltered from equity market volatility.
- No LOCs: We do not utilize Letters of Credit. Collateral is tangible, liquid, and present in the account.
Adequacy & Access
We post collateral equal to 110% of our cedents' booked loss reserves (or reserves plus an actuarial buffer) to ensure coverage even in adverse development scenarios.
Cedents are sole beneficiaries of trust accounts, with direct visibility and immediate access to funds for claims without Cover Re approval.
Lines of business
Credit Security
Claims are backed by U.S. Dollars and investment-grade assets in a segregated trust, not an LOC.
Liquidity
Seamless monthly or quarterly settlement via wire transfer directly from the trust.
Expertise
Seasoned underwriting team from top-tier global (re)insurers.
Alignment
Long-term partner structured to align our capital interests with your underwriting performance.
Frequently Asked Questions
What is fully collateralized reinsurance?
Fully collateralized reinsurance means that 100% of the reinsurer's obligations are backed by cash and investment-grade assets held in a trust account. Unlike traditional reinsurance where cedents rely on the reinsurer's credit rating, collateralized structures provide direct access to funds securing claims—eliminating counterparty credit risk.
How does a Regulation 114 trust work?
A Regulation 114 trust is a reinsurance collateral arrangement where assets are held by a U.S. trustee for the benefit of the ceding insurer. The cedent is the sole beneficiary with direct access to funds for claim payments. This structure allows unlicensed or non-admitted reinsurers to provide reinsurance credit to U.S. insurers under state insurance regulations.
Does Cover Re use letters of credit?
No. Cover Re does not utilize letters of credit (LOCs). All collateral consists of tangible, liquid assets—USD cash, short-duration U.S. Treasuries, and investment-grade bonds—held directly in segregated trust accounts. This eliminates the bank credit risk associated with LOC-backed structures.
What lines of business does Cover Re write?
Cover Re writes quota share and excess of loss reinsurance across commercial and personal lines including: Commercial Liability, Commercial Property, Commercial Auto, Workers' Compensation, Umbrella & Excess Liability, Professional Liability, Homeowners, and Personal Auto.
How do cedents access funds for claims?
Cedents are sole beneficiaries of their dedicated trust accounts with direct visibility and immediate access to funds. Claims can be settled via wire transfer directly from the trust without requiring Cover Re approval, ensuring fast and reliable claim payments.
What is Cover Re's collateralization ratio?
Cover Re posts collateral equal to 110% of cedents' booked loss reserves. This over-collateralization provides a security buffer to ensure coverage even in adverse development scenarios.