HSCM Bermuda has launched a new insurance credit strategy with a $400 million capital commitment from Security Benefit Life Insurance Company.

The HSCM Insurance Credit Strategy will seek to originate and invest in medium to long-term debt issued by insurance companies, reinsurance companies, and re/insurance distribution and service companies.

Rachel Bardon, in addition to her role as partner and deputy chief investment officer at HCSM Bermuda, has been named chief investment officer of the strategy.

Ms Bardon said: “We believe that insurance debt continues to achieve an attractive risk premium due to the complexity of the investment. I am thrilled to be spearheading our continued growth in high-quality debt for insurance-related enterprises.”

Over the past six years, HSCM Bermuda said, it has built diversified sourcing capabilities across lines of business, worked with top-tier credit issuers in P&C and life businesses, and has demonstrated a proven track record of reliable and efficient execution.

As the strategy expands HSCM Bermuda’s presence, it will build on this track record to offer financing solutions for small to medium-sized insurance companies under-served by traditional financing channels due to balance sheet nuances, capital-intensive business models and difficult regulatory capital structures.

“We are delighted to be expanding our partnership with Security Benefit,” said Michael Millette, managing partner of HSCM Bermuda. “We have collaborated successfully across life insurance in the past and are excited to continue to work with the team on insurance credit.”

Joseph Wittrock, chief investment officer for Kansas-based Security Benefit, said: “We look forward to continuing and growing our relationship with HSCM Bermuda.

“HSCM Bermuda’s debt-sourcing capabilities across the insurance industry will complement our existing origination capabilities and present us with new investment opportunities to build on our industry-leading returns.”