Howden Re has entered a strategic cooperation agreement with Rivonia Road Capital, a US-based credit investment manager.
The partnership is aimed at offering financing solutions to insurance agents, brokers, and other industry participants, with a focus on sectors such as dental, Medicare Advantage, and supplemental health benefits.
Under the agreement, Howden Re will expand its services by providing financing options to its global client base, complementing its established work in risk, strategy, and capital advisory.
Rivonia Road Capital, meanwhile, will be responsible for structuring and managing the financing arrangements, applying its asset-based lending expertise. The collaboration will target the development of programs intended to help insurance agencies and brokerages manage cash flow, expand operations, and enhance client services.
Rivonia Road Capital has recently been active in the insurance financing space. In March, the firm closed a US$50 million senior secured revolving credit facility for a provider specializing in commission advance financing to accident and health insurance agencies. The funding was used to refinance existing debt and support the expansion of agency networks.
Tae Kim (pictured above left), managing director for accident and health at Howden Re, said the formalization of the partnership with Rivonia Road Capital reflects Howden Re’s approach to supporting clients in a changing market environment.
“Rivonia’s partnership will allow us to streamline how insurance agencies, brokerages, and other participants access capital, and we very much look forward to working with them,” Kim said.
Since its founding in 2017, Rivonia Road Capital has invested over US$1 billion in alternative assets, concentrating on specialty finance and asset-based lending markets. The firm's investment portfolio spans consumer, commercial, and insurance lending markets, demonstrating its experience in deploying capital across a range of financial sectors.
Brad Smiedt (pictured above, right), co-founder and managing partner at Rivonia Road Capital, said Howden Re’s industry knowledge and broad client network will contribute to delivering financing solutions.
“Together, we will deliver strategic financing solutions that not only bolster commission revenues but also unlock growth opportunities for players across the insurance ecosystem,” Smiedt said.
In addition to its reinsurance services, Howden Re has built a record of advising on more than 200 insurance industry financing transactions through its capital markets & advisory division.
These transactions have included initial public offerings, common stock, convertible preferred instruments, hybrid securities, surplus notes, and a range of debt offerings such as high-grade and high-yield debt, as well as bank and contingent capital financing.
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