Re Member Fund

Earn steady yields uncorrelated to other asset classes by backing lower-volatility insurance companies worldwide.

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Eligibility

Investor Type: Accredited Investor

IRA Eligible: Yes

Schedule

Subscription Frequency: Quarterly

Returns & Fees

Total Management Fee: 2%

Total Performance Fee: 0%

$600M+

On Chain²

500K+

Investors and Counting³

3%

Selection Rate

0.5%

Management Fee

FUND PROFILE

Who’s This Fund For?

Diversification

Low

Med

High

Volatility

Low

Med

High

Liquidity

Low

Med

High

OVERVIEW

For Investors Seeking Stable, High- Yield Investments & Diversification

This Fund invests in a diverse set of insurance companies and programs to earn an uncorrelated high-yield fixed-income like return.

✓ Licensed and regulated reinsurer: Re is a fully licensed reinsurer, subject to regulatory oversight, and has backed $50M in premium¹. The Member Fund is registered as a mutual fund, allowing accredited investors to access the fund.

✓ Diversified program portfolio: Re’s 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.

✓ 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 focuses on reinsurance treaties that are low volatility and exclude catastrophic risk, providing the potential for stable returns.

✓ First in line to be repaid: The fund provides senior tranche capital through participating quota share notes. Senior tranches typically contain assets with higher credit ratings and have first lien on the assets, meaning they're in line to be repaid first, in the case of default.

¹As of January 01, 2024. 

Introducing the Re Member Fund

Earn uncorrelated high-yield fixed income-like returns with reinsurance.

REINSURANCE

What Is Reinsurance?

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.

Imagine This Scenario 

This below example highlights the potential for substantial returns on your investment, even under stressed scenarios.

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.

How Are Profits Generated in Reinsurance?

For example, an insurance company might insure commercial property risks with policy limits up to $10 million, and then buy per risk reinsurance of $5 million in excess of $5 million. In this case, a loss of $6 million on that policy will result in the recovery of $1 million from the reinsurer.

Why Invest in Reinsurance?

The reinsurance market is at a unique inflection point where traditional providers have reduced capacity due to losses on long-dated fixed-income portfolios, catastrophic (CAT) losses, and a preference to back larger insurers in lieu of the specialty insurance programs that Re focuses on.

• Insurance premium rate levels have risen
• Risk-free rates have risen, enhancing investment income earned on premiums generated
• Larger players are skewing towards conservatism at a time when there is significant reinsurance demand

INVESTMENT DETAILS & PERFORMANCE

What Am I Investing In?

This fund provides senior tranche capital through participating quota share notes issued in connection with a basket of diverse insurance programs, spanning categories such as auto, home, and workers' compensation amongst others.

✓ Asset class: Reinsurance

✓ Capital structure: Senior Tranche

✓ Geography: North America & Europe

BEHIND THE INVESTMENT

Who Is Re?

Re is a dedicated team of engineers, underwriters, designers, and insurance specialists committed to applying innovative technology to the reinsurance sector with the goal of transforming the industry by introducing a digital approach to managing insurance premiums.

$13B

In Premiums Assessed

$83M

Gross Written Premium

18

Insurance Programs

✓ Re's development team built & scaled Y Combinator-backed insurer Cover, and was among early Shopify employees.

✓ Reinsurance operations are headed by the former CEO of Willis Programs.

✓ Investors include innovative reinsurers and well known crypto and venture funds including Electric Capital, Tribe Capital, f, Sirius Point, Exor, and Defy.

Subscription documents must be completed, in good order, and funding received by the following dates, to be included in a monthly fund close.

Funds must arrive by 11:00am New York Time (GMT-4) or 5:00pm Luxembourg time (GMT+2) on the stated subscription deadline date in order to be deployed into the fund on the first day of the following month.

Investor Subscription Deadlines

NAV / Valuation Date

Thursday, June 20

Thursday, Aug. 22

Friday, July 19

Friday, Sept. 20

Tuesday, Aug. 20

Monday, Oct. 21

Friday, Sept. 20

Friday, Nov. 22

Friday, Oct. 18

Friday, Dec. 20

Wednesday, Nov. 20

Wednesday, Jan. 22

Friday, Dec. 20

Friday, Feb. 21

GETTING STARTED

Subscription Process

The Securitize subscription process is similar to other investment platforms. Once you verify your identity, you can quickly invest in offerings without having to go through the same onboarding process again.

1. Create Account/Log In: verify your identity, complete your investment profile questionnaire, and submit an accreditation application
2. Choose Your Investment: select the fund you wish to invest in and enter the investment amount. 
3. Sign documents: view and sign subscription documents & follow funding instructions to fund your investment via wire transfer or ACH. Here, you’ll be able to decide if you’d like to self custody or hold your investment in your Securitize account.

Investing through your self directed IRA? Please contact investorsupport@securitize.io to learn more about the process and initiate an investment.

Investor Questions