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WoodStar Reciprocal Exchange to back capacity for Accelerant Risk Exchange
WoodStar Reciprocal Exchange plans to provide dedicated underwriting capacity for the Accelerant Risk Exchange, with meaningful direct business expected to begin in 2027.
Accelerant, a data-driven risk exchange platform for the specialty insurance market, has partnered with newly launched WoodStar Reciprocal Exchange, a reciprocal insurer designed to fund additional capacity for the Accelerant Risk Exchange.
WoodStar is backed by more than $220 million of surplus notes and capital from unrelated third parties, including Kilter Finance, a KKR-backed specialty finance company, and funds managed by Blue Owl Capital. WoodStar will provide dedicated underwriting capacity exclusively for the Accelerant Risk Exchange, and is expected to begin writing meaningful direct business during 2027.
The partnership is intended to bring low-volatility, specialty commercial insurance risk closer to high-quality institutional capital while expanding the risk exchange’s roster of insurers. AM Best has already assigned WoodStar a financial strength rating of “A-” (Excellent).
Accelerant does not have an ownership interest in WoodStar, but an attorney-in-fact, majority-owned by Accelerant, will manage the reciprocal insurer. Accelerant will provide underwriting, distribution, claims and other services under contractual arrangements.