Hudson Structured expands debt partnership with insurtech Buckle

Hudson Structured Capital Management Ltd., the reinsurance, insurtech, insurance-linked securities (ILS) and transportation focused investment manager, has made a further investment commitment to support auto and rideshare focused insurtech Buckle, participating in an extension of the startups debt facility.

Hudson Structured, which enters into insurance and reinsurance investment business as HSCM Bermuda, participated in a $15 million upsizing of Buckle’s term loan alongside investment firm Siguler Guff & Company, LP.

The additional debt investments take the term loan structure total to $35 million and Buckle expects to use the capital for expanded distribution of its signature gig insurance products, as well as growing the business on its carriers, plus utilsiing a portfolio of reinsurance partnerships across all programs.

With this new debt expansion, Buckle has now raised total capital of roughly $115 million to-date.

Hudson Structured began its investment relationship with Buckle in 2020, when the investment manager recapitalised an auto insurer to support the expansion of Buckle’s ride share and sharing economy focused insurance offering.

Buckle had acquired auto insurer Gateway Insurance Company (Gateway), a company with 47 state insurance licenses, and Hudson Structured, through HSCM Bermuda recapitalised Gateway, supported the financing of this licensed fronting carrier.

Hudson Structured then co-led a $31 million Series A funding round for Buckle in August 2020, building on its investment relationship with the auto insurtech.

That was followed by Hudson Structured participating in a $60 million Series B funding round for Buckle, while HSCM Bermuda also expanded the surplus term loan it had provided to the insurtech from $10 million to $20 million

“Today’s announcement underscores Buckle’s unique ability to attract participants in this emerging segment and validates our distinctive approach as we advocate for the economic independence of our drivers,” Marty Young, chief executive officer of Buckle said. “The recent expansion of our gig product across Maryland and Nevada, as well as our ongoing support of our members helps us bolster the success of these drivers.”

“We’re thrilled to begin a relationship with Buckle, an emerging leader in the gig insurance space. The deep industry experience of the team, scalability of the platform, and its focus on a unique segment of the market makes Buckle an exciting partner for our investment,” explained Ray Miller, managing director, Credit and Special Situations at Siguler Guff.

“Our ongoing relationship with Buckle has gone from strength to strength, and we are pleased to provide additional surplus capital to Buckle as they achieve their vision and growth,” added Rachel Bardon, partner and chief actuary at HSCM Bermuda.

Buckle also said that it has extended all expiring reinsurance with its incumbent reinsurers and also added a new key reinsurer to its panel in the last three months.

Reinsurance capital remains key to expansive insurtech startups, helping them to both grow their businesses with robust support, while also moderating volatility in claims and losses, plus allowing them to effectively lean on reinsurance capital to expand at pace.

“We are proud of the breadth and depth of our ongoing reinsurance partnerships. These renewals speak to the strength of Buckle’s business model, the value our reinsurers see in our approach, and the expertise we bring to the table,” James Camerino, head of strategic partnerships for Buckle stated.

Hudson Structured invests across the insurance and reinsurance market spectrum, including insurtech, with direct investments into risk via insurance-linked securities (ILS) arrangements, private debt financing and also venture-style equity investments.