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Cyber MGA Resilience hits $650mn valuation in $80mn Series C round

Resilience logo san francisco.jpg

InsurTech Cyber MGA Resilience has raised $80mn in a Series C round co-led by General Catalyst and Corey Thomas of Rapid7.

Investors Lightspeed Venture Partners, Founders Fund, Charles River Ventures, Shield Capital and Intact Ventures also participated in the round.

The investment comes as Resilience plans for middle-market expansion and international growth, the company said.

In an interview with Inside P&C, Resilience president Mario Vitale noted that the market had “embraced our value proposition, in such a way that is exceeding our expectations of growth.”

He went on to say that the fresh capital was a “strong part” of the company’s plan in 2022 to expand its business, both domestically and internationally, starting in the UK and Continental Europe.

Vitale told this publication that the fundraising had pushed the firm’s valuation to $650mn, “something which has not happened in this field in such a short period of time”.

Resilience was launched in November 2020 with a strategic investment and underwriting capacity from Intact Insurance’s specialty solutions arm. The company has since gone on a hiring spree, adding underwriting talent in recent months from Ironshore, Axa XL, Coalition, and CNA, among other cyber insurance carriers.

When asked if the company plans to raise more capital to fund its growth, Vitale said that “as we expand in the future, we will continue to grow the need to attract capital,” but noted that the Insurtech MGA has “no immediate plans” to do so.

Amid a sharp uptick in ransomware attacks, cyber rates have surged ahead of initial expectations, and capacity has contracted with resistance among carriers to take in new business.

Cyber loss ratios jumped to 67.8% in 2020 – and higher for many carriers – from 44.8% in 2019, according to a recent report by RPS.

When asked how Resilience is navigating the market-wide tightening in capacity, Vitale said that “we are conservative underwriters” and “very good partners” to paper providers, having fostered strong relationships with reinsurers.

“We are managing capacity in a responsible way,” Vitale stated. “We’ve had very good support from the insurance and reinsurance markets. We don’t have limitations in what we do, in part because we are not doing anything irresponsibly.”

“We are not writing risks that are unprofitable for our capacity providers,” he added.

In some instances, several InsurTechs that began as MGAs, such as Pie and Embroker, have begun to take-on risk, as they seek greater control over their capacity. Resilience did not outline their plans.

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