Cover Re funding through investment notes from the Resilience Foundation has reached $165 million following a second, $65 million transaction announced on October 20, 2026. Re also named three senior executives to strengthen the underwriting, risk and investment functions of its Cayman Islands-based reinsurer.
Key Takeaways
- The new $65 million investment note follows an initial $100 million note executed in April 2026.
- Capital sourced from onchain deposits is converted into US dollars to support fully collateralized reinsurance contracts.
- Tim McDermott, Ken Kurtzman and Jack Nelson join to lead property and multiline underwriting, risk, and investments.
Table of Contents
- Cover Re funding expands through a second investment note
- How the capital reaches reinsurance contracts
- New executives bring underwriting and investment experience
- Conclusion
Cover Re funding expands through a second investment note
The Resilience Foundation executed the new note with Cover Re SPC Ltd., Re’s wholly owned reinsurance subsidiary. The $165 million figure represents capital deployed through the two notes, rather than a disclosed measure of the company’s total assets or equity.
Cover Re is domiciled in the Cayman Islands and holds a Class B(iii) insurer’s license from the Cayman Islands Monetary Authority. The additional capital supports its capacity to write reinsurance for US and international insurers.
Re Chief Executive Karn Saroya described the second transfer as part of the company’s approach to expansion. “A second transfer of this size shows the April note wasn’t a one-off; it’s how we intend to grow,” he said.
| Item | Details |
|---|---|
| Tim McDermott — Head of Property and Multiline | Responsible for portfolio construction, capacity structuring, and relationships with insurers and managing general agents. |
| Ken Kurtzman — Chief Risk Officer | Responsible for underwriting limits, capital oversight, and reporting enterprise risks to leadership. |
| Jack Nelson — Chief Investment Officer | Responsible for asset allocation, liquidity, duration, collateral, and investment-related regulatory compliance. |
How the capital reaches reinsurance contracts
The Resilience Foundation’s capital deployment announcement explains that the money originates in onchain deposits associated with reUSD and reUSDe. A portion of that pool is transferred to Cover Re, which converts stablecoins into US dollars to support new reinsurance contracts.
Cover Re’s contracts are fully collateralized, with assets backing contractual obligations held in segregated trust accounts. This structure connects blockchain-based funding with conventional reinsurance obligations; it does not make token holders insured parties or beneficiaries of the reinsurer.
Payments on the investment notes come from Cover Re’s reinsurance activities and flow back onchain to support holder yields. The Foundation cautions that yields are variable and not guaranteed.
New executives bring underwriting and investment experience
McDermott joins from ERGO NEXT, where he oversaw property and casualty product management and financial performance across commercial liability, property and inland marine portfolios. He previously spent more than a decade at Munich Re managing reinsurance partnerships.
Kurtzman brings more than 35 years of actuarial, underwriting and risk-management experience. At NEXT Insurance, he led reinsurance purchasing, developed the enterprise risk-management framework, and managed capital and reserving. His earlier employers include Platinum Underwriters and Swiss Re.
Nelson previously served as senior vice president and chief investment officer at Everest Re Group from 2009 to 2021. His new remit covers the cash and investment-grade assets backing Cover Re’s reinsurance obligations.
Conclusion
The next operational step is deploying the additional capital to support new reinsurance contracts, with the expanded leadership team overseeing how those obligations are underwritten, funded and managed.
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