Coalition, the San Francisco-headquartered provider of cyber insurance and security, has announced the formation of Ferian Re, an independent Bermudian-based Class 3B reinsurer that will provide capacity across Coalition's cyber programmes.

Ferian Re will be capitalised with approximately $300 million from an investor group led by funds managed by BDT Capital Partners LLC, an affiliate of BDT & Company LLC, a merchant bank that works with family and founder-led businesses to pursue their strategic and financial objectives.

Minority investors include The Pritzker Organization among other sophisticated global investors with long-term investment horizons.

In conjunction with its launch, Ferian Re commits to participate in Coalition's cyber insurance programmes alongside leading global insurers and reinsurers, including Allianz Group, Arch Insurance North America, and Swiss Re Corporate Solutions.

Dan Jester, President and co-chief investment officer of BDT Capital Partners, said: "Coalition has pioneered a new model of risk management with Active Insurance, which has resulted in continued strong performance and market-leading loss ratios.

"With the formation of Ferian Re, we are excited to provide a tailor-made capital solution to support Coalition as it scales to be one of the largest cyber insurance providers globally.

“This investment reflects BDT's differentiated focus on providing patient capital to family and founder-led companies to support their long-term success."

Joshua Motta, Founder and CEO of Coalition, said: "The rapid growth of the cyber insurance industry has outpaced the supply of reinsurance capital. We're excited for Ferian Re to bring alternative capital to the market and introduce a reinsurer with deep expertise in cyber.

"Our partnership with BDT Capital Partners and other strategic, long-term investors will help address this supply and demand imbalance and support our long-term growth ambitions."

Coalition said it combined comprehensive insurance and proactive cybersecurity tools to help businesses manage and mitigate cyber-risk.