Credit or non-payment insurance (NPI) provides for the transfer of credit risk through an insurance contract. The insurance is unrated and unfunded and covers loss following a payment default. The risk is diversifying and has experienced low realized losses since the Global Financial Crisis (GFC).
Although large, the market for credit insurance is inefficient, making it difficult for (re)insurers to access desired exposures in a cost effective manner.
LimitFi addresses these market deficiencies with an end-to-end solution to manage credit liabilities for our panel. Our outsourced underwriting model results in better risk taking, more diversified exposures and enhanced profitability for our partners.
We focus on low-loss, conservatively structured credit risk where there is not an optimal private capital or capital markets solution. The majority of our exposure will be equivalent to what would be an investment grade rating.
We target product segments that are scalable and repeatable and best leverage our tech-enabled approach.
Our risk is sourced through deep relationships with banks, specialty lenders, asset managers, insurers and traditional broker channels.
SPVs and Fund Level Leverage: Asset-based financings of private equity, private credit and other similar funds. These facilities have modest diversity by industry and number of underlying positions.
Securitization-Like Portfolios: Asset-based financings that resemble a securitization, but do not have an efficient capital markets solution for one reason or another. Asset classes may include consumer, corporate, SME, insurance-linked, equipment, real estate or other esoterics.
Bank / Corporate Portfolios: Risk-based capital or exposure relief transactions relating to a specific portfolio of loans on a bank balance sheet, structured to ensure maximum alignment to the insurers.
Single Name: Corporate, project finance and real estate loans. In all cases, conservatively structured senior secured first lien loans that can withstand severe stress.