Balance Re secures €8.44M to offer reinsurance solutions to life insurance companies

UK and Germany-based Balance Re, a life reinsurance startup that specialises in quantitative asset-liability management, announced that it has raised $10M (approx €8.44M) in its Series A round of funding.

As per the company, it tackles one of the most “fascinating problems” of life insurance: managing the complex interactions between insurance and financial risks.

Investors and fund utilisation 

The current round saw participation from financial services investor Anthemis Group and Global Brain. Existing investors Roland Berger Industries and Talabot Finance also participated.

The raised capital will help Balance Re to further develop its proprietary asset-liability management technology. 

It will also help support its fully licensed German reinsurance company based in Cologne.

Here’s what Balance Re offers

Founded by Lucian Rautu and Michel Gauer, Balance Re provides reinsurance solutions to life insurance companies and pension funds. Its proprietary technology enables users to assess and measure risks and facilitates real-time data analysis.

According to a statement from Balance Re, Solvency II transitional measures represent on average 150 percentage points of life insurers’ solvency capital ratios in its launch market, Germany.

Solvency II is a directive in European Union law that concerns the amount of capital EU insurance companies must hold to reduce the risk of insolvency.

Balance Re enables its clients to release capital to fund growth, support product repositioning, and improve (or regain) a competitive advantage. With its real-time risk management capabilities, the company claims to be the first reinsurer to provide its clients with easy-to-implement and cost-efficient reinsurance solutions.