A reciprocal insurance company is an unincorporated arrangement where individuals or businesses (called subscribers) exchange insurance contracts among themselves and use a common manager, known as an attorney‑in‑fact, to collect premiums, handle claims and administer operations. It matters to investors because its unique legal and governance setup—similar to a homeowner co‑op hiring a manager to handle shared coverage—affects capital requirements, how losses are shared, regulatory treatment and the financial stability of entities tied to it.
surplus notesfinancial
A surplus note is a special kind of loan an insurance company issues that counts toward its financial cushion; think of it as a secondary safety pad that helps the insurer meet regulators’ capital requirements. It matters to investors because it usually pays higher interest than ordinary bonds but is riskier — interest and principal repayments can be delayed or need regulator approval, so holders sit behind policyholders in claims and face greater uncertainty.
am bestfinancial
A.M. Best is a long-established credit-rating agency that evaluates the financial strength and ability of insurance companies to pay claims. Investors use its ratings like a weather report for insurers — a stronger rating signals lower risk of unpaid claims and more predictable cashflow, which can affect an insurer’s stock, bond prices, borrowing costs and appeal as a business partner.
underwriting capacityfinancial
The amount of securities and risk an investment bank or syndicate is able and willing to guarantee for a new offering or underwriting deal. Think of it like the financial muscle behind a concert promoter: higher capacity means the underwriter can buy and absorb more shares if demand falls, which gives issuers confidence their sale will succeed and helps investors assess the likelihood of a well-managed, fully funded offering.
attorney-in-factregulatory
An attorney-in-fact is the person or entity given legal authority through a power of attorney to act on behalf of another for specific tasks, such as signing documents, voting shares, or handling transactions. For investors, this matters because it lets a trusted representative make timely decisions or complete paperwork when the owner cannot, much like handing keys to someone to run errands on your behalf—so checks on scope and limits of that authority are important.
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WoodStar formed to provide dedicated underwriting capacity via the Accelerant Risk Exchange
ATLANTA--(BUSINESS WIRE)--Accelerant(NYSE: ARX), the data-driven risk exchange platform transforming the specialty insurance marketplace through the Accelerant Risk Exchange, today announced a partnership with newly formed WoodStar Reciprocal Exchange (“WoodStar”).WoodStar is a reciprocal insurance company funded with more than $220 million of surplus notes and capital from unrelated third parties including Kilter Finance, a KKR-backed specialty finance company that provides capital solutions to small and mid-sized insurers, and funds managed by Blue Owl Capital (NYSE: OWL), a leading alternative asset manager. This partnership reinforces Accelerant’s long-term strategy to bring low volatility, specialty commercial insurance risk closer to high quality institutional capital and grow with a diverse set of insurance companies on the Accelerant Risk Exchange.
WoodStar received an AM Best financial strength rating of “A -” (Excellent) and will provide dedicated underwriting capacity exclusively for the Accelerant Risk Exchange. The reciprocal insurance company will be managed by an attorney-in-fact which is majority owned by Accelerant, in addition to unrelated minority investors. Accelerant does not have any ownership interest in WoodStar, but will provide underwriting, distribution, claims and other services pursuant to contractual arrangements.
“WoodStar is another step forward for our platform,” said Jeff Radke, CEO of Accelerant. “We continue to develop attractive structures for institutional investors and other risk capital providers to partner with the Accelerant Risk Exchange and support our growing Member base.”
“We have been impressed by Accelerant’s underwriting capabilities, deep MGA network, and differentiated approach to aligning risk and capital. We are excited to be partnering with the Accelerant Risk Exchange through WoodStar,” Dan Knipe, CIO of Kilter Finance said. “This innovative solution is another demonstration of Kilter’s insurance sector expertise,” continued Charles Lens, Managing Director of Kilter Finance.
“We are excited to support WoodStar, a structure designed for long-term, capital-efficient growth,” said Bharath Subramanian, Managing Director at Blue Owl Capital. “We look forward to providing capital to meet the risk management needs of a diversified group of small and medium sized US businesses together with the Accelerant Risk Exchange.”
WoodStar is expected to begin writing meaningful direct business on the Accelerant Risk Exchange during 2027.
About Accelerant
Accelerant operates the Accelerant Risk Exchange, a data-driven platform that connects specialty insurance underwriters with risk capital providers through advanced analytics, real-time data, and transparent underwriting insights. The platform supports diversified, low-volatility premium performance and scalable capital deployment across cycles. For more information, visit investor.accelerant.ai or inquire via email at investors@accelerant.ai.
About WoodStar
WoodStar is a reciprocal insurance company focused on specialty commercial lines coverages for small and medium-sized businesses exclusively through the Accelerant Risk Exchange. WoodStar was capitalized by Kilter Finance, Blue Owl Capital, and other experienced insurance industry professionals, while its attorney-in-fact is owned by Accelerant and unrelated minority investors. For more information, visit https://woodstarins.com/.
About Blue Owl
Blue Owl (NYSE: OWL) is a leading asset manager that is redefining alternatives®. With $315 billion in assets under management as of March 31, 2026, Blue Owl invests across three multi-strategy platforms: Credit, Real Assets and GP Strategic Capital. Anchored by a strong permanent capital base, Blue Owl provides businesses with private capital solutions to drive long-term growth and offer institutional investors, individual investors, and insurance companies differentiated alternative investment opportunities that aim to deliver strong performance, risk-adjusted returns, and capital preservation.
Kilter Finance is a specialist investor in insurance balance sheets and provides asset-origination, asset-underwriting, asset-servicing and asset-exit services to institutional investors, including its co-founding shareholder KKR. Kilter has led circa $1.8 billion of capital commitments across three complementary investment strategies. With an active and differentiated origination strategy and an actuarially-led approach to investing, Kilter has established a reputation as a leader in insurance investing. To learn more, visit www.kilterfinance.com.
