Re bridges DeFi to a massive and uncorrelated real world asset class.
Nearly $1T in annual reinsurance premiums.
Earn up to 25% APY by backing insurance companies globally, with yields uncorrelated to other markets.
Re is offering interests in our Member Fund, which invests in a stable reinsurance portfolio, focusing on senior quota share notes linked to a range of regulated insurance companies, all underwritten by our reinsurance company.
Investment Terms
Returns & Management fees
Management Fee
2%
Performance Fee
0%
Target Annual Yield:
23%*
Schedule
Min term
12 months
Structure
Master-feeder US/non-US
* Target is not a guaranteed return. See Importance Notice below for additional information regarding the information provided here.
Investment Highlights
The fund provides financial backing for a diverse set of insurance companies and programs to earn an uncorrelated high-yield fixed-income like return.
Projected Written Premium up to 2027
Re is set to support up to $200M in premium by the end of 2024 with a potential pipeline of $1B
Premise
Licensed & regulated
Re is a fully licensed reinsurer, subject to regulatory oversight, and operational, and has backed $50M in premium as of Jan 01, 2024. The Member Fund is registered as a mutual fund with the Cayman Islands Monetary Authority.
Diversified program portfolio
Our insurance pipeline consists of a huge variety of property insurance programs, as well as specialty programs in trucking, aviation, and cyber liability amongst others, amounting to $500M in addressable premiums in the near-term
Diligent underwriting
Today, we are backing a variety of insurance companies and a diverse set of insurance programs
Artisan contractors insurance across the US
Roadside assistance networks across the US
Auto insurance policies for underserved communities
Workers compensation for service workers
Dive deeper
What am I investing in?
Reinsurance, often referred to as "insurance for insurance companies," is a contract between a reinsurer and an insurer. In this contract, the insurance company - the cedent - transfers risk to the reinsurance company, and the latter assumes all or part of one or more insurance policies issued by the cedent and is compensated for doing so.
The Member Fund will provide senior tranche capital through participating quota share notes issued in connection with a basket of diverse insurance programs, spanning auto, home, and workers' compensation amongst others.
By strategically investing in reinsurance, you gain access to a lucrative opportunity to capitalize on the insurance company's risk management strategies. This below example highlights the potential for substantial returns on your investment, even under stressed scenarios.
The Member Fund will provide senior tranche capital through participating quota share notes issued in connection with a basket of diverse insurance programs, spanning auto, home, and workers' compensation amongst others.
By strategically investing in reinsurance, you gain access to a lucrative opportunity to capitalize on the insurance company's risk management strategies. This below example highlights the potential for substantial returns on your investment, even under stressed scenarios.
Imagine this scenario
An insurance company takes on the task of insuring commercial small business risks, generating $100 million in premiums across tens of thousands of policyholders. To provide balance sheet support sufficient to issue these policies, the insurer secures reinsurance while retaining $20 million as an origination fee to cover their expenses. $80M in premiums are transferred to reinsurers where they generate investment income and are used as the first capital layer to pay claims. Actuaries and underwriters assess that only $70 million will be needed to pay claims and related expenses. Thereby booking a net reinsurance margin of 10% or $10 million. Depending on the reinsurers surplus ratio, or the amount of capital required to be held in reserve, the actual ROE will be some multiple of the reinsurance margin. In low-volatility lines of insurance business, especially across a diversified set of partner insurers and programs, risk-adjusted returns can be exceptional.Why should you consider investing?
In our view, the reinsurance market is at a unique inflection point where traditional providers have reduced capacity due to losses on long-dated fixed-income portfolios, CAT losses, and a preference to back larger insurers in lieu of specialty insurance programs that Re focuses on.
● Insurance premium rate levels have risen
● Risk-free interest rate has risen, enhancing investment income earned on premiums generated
● Larger players are skewing towards conservatism at a time when there is significant reinsurance demand
● Insurance premium rate levels have risen
● Risk-free interest rate has risen, enhancing investment income earned on premiums generated
● Larger players are skewing towards conservatism at a time when there is significant reinsurance demand
Where do returns comes from?
The reinsurance market plays a pivotal role in ensuring the stability and solvency of the global insurance industry. By spreading risks and leveraging expertise in risk assessment, reinsurers allow primary insurers to take on more risks than they could handle on their own.
● Premiums: We collect premiums from insurance companies, which after expenses, contribute significantly to our revenue.
● Investment Income: We invest these premiums, and the returns are vital to our earnings.
● Underwriting Profit: By accurately pricing risks and managing claims efficiently, we achieve profits.
● Risk Diversification: We spread risks across sectors and regions, ensuring stability in our returns.
● Premiums: We collect premiums from insurance companies, which after expenses, contribute significantly to our revenue.
● Investment Income: We invest these premiums, and the returns are vital to our earnings.
● Underwriting Profit: By accurately pricing risks and managing claims efficiently, we achieve profits.
● Risk Diversification: We spread risks across sectors and regions, ensuring stability in our returns.
Investment Strategy
We choose our partners carefully. We would rather do a few things well than overpromise and underdeliver. Quality over quantity drives our approach.
Our strategy is to be disciplined and patiently develop long-term profitable relationships with insurance companies that are like-minded. Re is not purely opportunistic but rather seeks out business partners that fit our long-term view of underwriting and in turn creates a true value proposition to all parties.
Our risk appetite
Aviation
Business owners
Commercial multi peril
Embedded insurance
General liability
Homeowners
Inland marine
Personal & commercial auto
Professional liability
Umbrella liability
Workers compensation
Program Diversification
Our insurance pipeline consists of a huge variety of property insurance programs, as well as specialty programs in trucking, aviation, and cyber liability amongst others, amounting to $500M in addressable premiums in the near term.
Premium by Type of Business
Premium by Line of Business
Fund Details
A third-party capital layer for the protocol that provides the most senior capital backing all insurance programs
Blockchain Security
The fund invests directly into a blockchain-secured and validated reinsurance vehicle, Re, ensuring high levels of security and transparency.
Predictable Returns
The combination of low-volatility treaties, and the transparency of the blockchain allows for predictable returns on insurance investments.
Focus on Low Volatility
The fund will focus on reinsurance treaties that are low volatility providing the potential for stable returns.
Diversification
This fund offers a unique opportunity to diversify an investment portfolio with exposure to the insurance sector, a traditionally stable industry.
Ownership Requirements (US / INTL)
All subscriptions must be held for a minimum of 1 year. Redemption upon request will be granted pending the actuarial release of funds based on required future claims estimates as determined by the fund. Please review the private placement memorandum and other Offering Materials carefully for important information regarding investor qualifications and limitations on redemption.
Additional Fund Details
Key Fund Terms
Investor Qualification
Accredited investors or Qualified purchasers
Tax Reporting
Re Member Fund A LP (“Fund A”) is a Cayman Islands exempted partnership treated as a corporation for US federal income tax purposes.
Re Member Fund B LP (“Fund B”) is a Cayman Islands exempted partnership treated as a partnership for US federal income tax purposes. US reporting for US investors; applicable non-US reporting for non-US investors
Re Member Fund B LP (“Fund B”) is a Cayman Islands exempted partnership treated as a partnership for US federal income tax purposes. US reporting for US investors; applicable non-US reporting for non-US investors
Management Fee
2%
Performance Fee
0%
Subscription Frequency
Interests in Fund A and Fund B will be issued no more frequently than each calendar quarter.
Service Providers
Fund Administrator
Theorem Fund Services, LLC
Fund Auditor
Grant Thornton LLP
Transfer Agent
Securitize Markets, LLC
Fund Manager
Re Member Fund Management Co, LLC
Important Notice
The offering described on this website is only available to qualified investors who are “non-U.S. persons” as defined under Regulation S under the Securities Act of 1933, as amended and are otherwise qualified to invest under the laws of their own jurisdiction or, in the case of U.S. Persons, such purchaser’s qualification as an accredited investor as defined by the Securities and Exchange Commission in Rule 501(a) of Regulation D promulgated thereunder (for U.S. Persons). In order to ensure compliance with Regulation D & Regulation S, we may be obligated to take additional steps to verify any participating investor’s status as an “accredited investor” or “non-U.S. person.”
Certain information set forth on this website contains “forward-looking information”, including “future-oriented financial information” and “financial outlook”, under applicable securities laws (collectively referred to herein as forward-looking statements). Except for statements of historical fact, the information contained herein constitutes forward-looking statements and includes, but is not limited to, the (i) projected financial performance of the Company; (ii) completion of, and the use of proceeds from, the sale of the shares being offered hereunder; (iii) the expected development of the Company’s business, projects, and joint ventures; (iv) execution of the Company’s vision and growth strategy, including with respect to future M&A activity and global growth; (v) sources and availability of third-party financing for the Company’s projects; (vi) completion of the Company’s projects that are currently underway, in development or otherwise under consideration; (vi) renewal of the Company’s current customer, supplier and other material agreements; and (vii) future liquidity, working capital, and capital requirements. Forward-looking statements are provided to allow potential investors the opportunity to understand management’s beliefs and opinions with respect to the future so that they may use such beliefs and opinions as one factor in evaluating an investment.
These statements are not guarantees of future performance and undue reliance should not be placed on them. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements.
Although forward-looking statements contained in this website are based upon what management of the Company believes are reasonable assumptions, there can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update forward-looking statements if circumstances or management’s estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements.
Investors should consider the offering and associated risks carefully before investing. This means you should carefully review the private placement memorandum and other documents provided through the investor portal in connection with this offering (the “Offering Materials”). The articles and other information describing our business on this website may change and we are under no obligation to update or advise as to these changes. The information on this website is provided for convenience only, is not investment advice, and may not be relied upon in considering an investment in the offering. Prospective investors may rely only upon Offering Materials. We do not make any representations as to the accuracy or completeness of the information contained on this website and undertake no obligation to update the information.
Certain information set forth on this website contains “forward-looking information”, including “future-oriented financial information” and “financial outlook”, under applicable securities laws (collectively referred to herein as forward-looking statements). Except for statements of historical fact, the information contained herein constitutes forward-looking statements and includes, but is not limited to, the (i) projected financial performance of the Company; (ii) completion of, and the use of proceeds from, the sale of the shares being offered hereunder; (iii) the expected development of the Company’s business, projects, and joint ventures; (iv) execution of the Company’s vision and growth strategy, including with respect to future M&A activity and global growth; (v) sources and availability of third-party financing for the Company’s projects; (vi) completion of the Company’s projects that are currently underway, in development or otherwise under consideration; (vi) renewal of the Company’s current customer, supplier and other material agreements; and (vii) future liquidity, working capital, and capital requirements. Forward-looking statements are provided to allow potential investors the opportunity to understand management’s beliefs and opinions with respect to the future so that they may use such beliefs and opinions as one factor in evaluating an investment.
These statements are not guarantees of future performance and undue reliance should not be placed on them. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements.
Although forward-looking statements contained in this website are based upon what management of the Company believes are reasonable assumptions, there can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update forward-looking statements if circumstances or management’s estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements.
Investors should consider the offering and associated risks carefully before investing. This means you should carefully review the private placement memorandum and other documents provided through the investor portal in connection with this offering (the “Offering Materials”). The articles and other information describing our business on this website may change and we are under no obligation to update or advise as to these changes. The information on this website is provided for convenience only, is not investment advice, and may not be relied upon in considering an investment in the offering. Prospective investors may rely only upon Offering Materials. We do not make any representations as to the accuracy or completeness of the information contained on this website and undertake no obligation to update the information.