FTX-exposed Relm Insurance remains committed to digital asset sector
Relm Insurance Ltd, the Bermudian-based specialty insurer, has revealed that it provides insurance coverage to the US and Australian entities of FTX, the crypto currency exchange that collapsed last month.
Bahamas-headquartered FTX Trading Ltd, which was founded and led by Sam Bankman-Fried, shocked the crypto world when it and affiliated companies filed for bankruptcy protection in November.
Relm’s co-founder and CEO is Joseph Ziolkowski.In a “Message from the CEO” posted on Relm’s website, he wrote: “Relm is a global leader in providing insurance to companies operating in new and emerging sectors.
“Since we began deploying our capacity in early 2020, we have written more than $100 million in gross premium, the majority of which is derived from coverage provided to companies operating in the digital asset and Web3 ecosystem.We also generate a material portion of our gross premium from companies operating in other uncorrelated innovative sectors.
“As a regulated general insurance company, Relm complies with stringent statutory and solvency reporting requirements imposed by the Bermuda Monetary Authority and files annual financial statements audited by Deloitte.Relm is rated for financial stability, and deemed ‘A, Exceptional’ by Demotech, an SEC-recognised Nationally Recognised Statistical Rating Organisation.”
Mr Ziolkowski added: “Unquestionably, this has been a difficult period in the digital asset industry, especially relating to FTX, Alameda Research and their affiliated entities.
“As has been reported in the media, Relm provides insurance coverage to West Realm Shires Inc (commonly known as FTX.US) and FTX Australia Pty Ltd.
“We also provide insurance coverage to companies that have been compromised due to their relationship with FTX and Alameda and we are actively assessing the extent to which our coverage could be triggered.
“Accounting for the potential for direct and indirect losses, we have allocated a portion of our general reserve for both known and unknown claims related to this market impact.
“Following a detailed review of our entire portfolio, we remain confident that we will continue to be well capitalised to serve the needs of the industry as the fallout from this event evolves.
“On the asset side of our balance sheet, we have remained highly conservative with approximately 95 per cent of our assets in cash or US Treasury Bills.
“Relm is committed to the digital asset space; not just by issuing policies and collecting premiums but also by paying legitimate, covered claims.
“We genuinely believe in the potential of distributed ledger technology, and that belief informs a major part of our underwriting appetite for innovation.
“Our commitment to the support and rebuilding of this sector during, and following, this trying time remains unwavering.”
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