Cover Re capital deployed through investment notes from the Resilience Foundation reached $165 million after a second, $65 million transaction announced on October 20, 2026. Re also appointed three senior executives to oversee risk, investments, and property and multiline underwriting as its Cayman Islands-based reinsurer expands.
Key Takeaways
- The $65 million investment note follows a $100 million note executed in April 2026.
- Capital sourced onchain is converted into U.S. dollars and held in trust to back reinsurance obligations.
- Ken Kurtzman, Jack Nelson and Tim McDermott will lead risk, investments, and property and multiline underwriting.
Table of Contents
- Cover Re capital supports a broader underwriting portfolio
- How the funding backs insurer obligations
- New executives oversee risk, assets and underwriting
- Conclusion
Cover Re capital supports a broader underwriting portfolio
The Resilience Foundation’s second investment note with Cover Re SPC Ltd. brings deployment through the two transactions to $165 million. That figure measures capital provided under the notes, rather than a disclosed total for Cover Re’s assets or equity.
The additional funding follows September 2026 treaty additions covering specialty auto, professional lines for startups, and large excess casualty. Those contracts brought cumulative bound premium since inception to more than $515 million. Bound premium represents premiums associated with reinsurance contracts, not the amount of capital held.
Re Chief Executive Karn Saroya described the second transfer as part of the company’s intended approach to growth. The company plans to continue pursuing U.S. managing general agents, program administrators and carriers seeking collateralized quota share reinsurance across property, casualty and multiline business.
| Item | Details |
|---|---|
| Ken Kurtzman | Chief risk officer: reinsurance risk appetite, capital management and enterprise risk oversight. |
| Jack Nelson | Chief investment officer: strategy for cash and investment-grade assets backing reinsurance obligations. |
| Tim McDermott | Head of property and multiline: underwriting, portfolio construction and capacity structuring. |
How the funding backs insurer obligations
The Resilience Foundation’s capital deployment announcement explains that onchain deposits fund a capital pool, part of which is deployed to Cover Re and converted from stablecoins into U.S. dollars. Cover Re uses that capital to support new reinsurance contracts, with collateral held in segregated trust accounts.
Re said the funds are held at a qualified U.S. trust institution for the benefit of ceding insurers. The investment note ranks behind Cover Re’s reinsurance obligations, meaning obligations to those insurers are paid first.
Cover Re operates under Cayman Islands Monetary Authority oversight with a Class B(iii) insurer’s license. Re said collateral balances are independently reported through third-party verification and its reinsurance obligations are backed dollar-for-dollar by trust assets.
New executives oversee risk, assets and underwriting
Kurtzman brings more than 35 years of actuarial, underwriting and risk management experience. His previous positions include risk leadership roles at NEXT Insurance, Platinum Underwriters and Swiss Re.
Nelson was chief investment officer at Everest Re Group from 2009 to 2021. At Cover Re, his remit includes matching liquidity and investment duration to expected claims payments, alongside collateral and regulatory requirements.
McDermott joins from ERGO NEXT, where he led property and casualty product management. He previously spent more than a decade at Munich Re building and managing reinsurance partnerships. His new role includes portfolio construction and capacity structuring for property and multiline treaties.
The appointments follow the selection earlier in 2026 of Paul Rigby as general counsel and Blanca Qin as head of underwriting.
Conclusion
The second note adds funding alongside dedicated leadership for Cover Re’s underwriting, risk and investment functions. The company’s stated next step is to expand engagement with insurers and program businesses seeking collateralized reinsurance capacity; it has not announced a timetable for another capital deployment.
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