Insurtech Accelerant launches a $175 mn sidecar investment vehicle Flywheel Re

Insurtech platform Accelerant has launched a new $175 million sidecar investment vehicle, called Flywheel Re. The new sidecar will provide multi-year risk capital to Accelerant and its cohort of underwriting-led specialist members.

Goldman Sachs served as exclusive placement agent to Accelerant and Sidley Austin LLP acted as legal counsel.

This is a natural extension of the work we’ve been doing to support specialist underwriters with additional capacity. But it also marks a major milestone in our journey as a company, and for the insurance industry at large.

Jeff Radke, CEO and co-founder of Accelerant

“We are now expanding our focus and diversifying sources of capital alongside the traditional reinsurance market by bringing our portfolio of low-volatility commercial SME risks to institutional investors in an innovative structure that efficiently supports our Members’ growth.”

Founded in 2018, Accelerant works its underwriting-led members to drive market-leading profitable growth in niche specialists.

Additionally, Flywheel’s long-term structure is vastly different from stereotypical historical catastrophe-focused sidecars, an approach that continues to distinguish Accelerant as key innovator in driving better outcomes across the insurance industry, says the firm.

Accelerant is a data-driven, technology-fueled insurtech that empowers underwriters with superior risk exchange, advanced data analytics, and long-term capacity commitments. Our full-service risk exchange supports our carefully selected, best-in-class network of underwriting teams.

We leverage granular information on each policy to deliver unprecedented insight into insurance pools, and our specialty portfolio is fully diversified with very low catastrophe, aggregation, or systemic risk.

by Peter Sonner