(Image source: LimitFi homepage.)
Limit Financial (New York), a managing general underwriter (MGU) specializing in credit insurance and reinsurance solutions, has announced that it recently closed a seed funding round led by Des Moines-based ManchesterStory, a venture capital (VC) firm focused primarily on the InsurTech sector. The companies declined to specify the amount of funding.
“As founders, Zach and I identified key inefficiencies in the credit markets which make it difficult for re/insurers to access desired exposures in a cost effective manner,” comments Adam Budnick, co-founder, LimitFi. “The successful close of our seed round is confirmation that our approach to addressing those market deficiencies is resonating with the insurance and reinsurance communities.”
LimitFi focuses on low-loss, conservatively structured credit risks where there is not an optimal private capital or capital markets solution. Risk is sourced through a deep network of banks, lenders, asset managers, brokers and insurers. Product segments are scalable and repeatable and best leverage a tech-enabled approach.
“The operational capital provided in this seed round will help LimitFi continue to build out the company’s team and push forward product development,” comments David Miles, founding partner, ManchesterStory. “LimitFi provides products and services which have been needed in the (re)insurance sector for some time, and ManchesterStory is pleased to be a part of their journey.”
End-to-End Solutions for Managing Credit Liabilities
LimitFi describes its services and technology as connecting financial services providers, including banks, lenders, and asset managers, with partners in the insurance ecosystem while the company’s outsourced underwriting model emphasizes better risk taking, more diversified exposures, and enhanced profitability. LimitFi says helps insurance and reinsurance company clients manage credit liabilities with an end-to-end solution.
“LimitFi’s platform leverages our collective experience in insurance, credit, investment management, and capital markets through multiple credit cycles,” comments Zach Smith, co-founder of LimitFi. “We would like to thank ManchesterStory for the support as we build the business. We look forward to working together in the years to come.”