Investor Memo: April 2026
$100 million moved from liquid backing into Cover Re SPC to fund diversified underwriting activity, as the platform's $358 million portfolio continues to scale.
From Capital Formation
to Active Deployment
April marked a key transition: $100 million moved from liquid backing into Cover Re SPC to fund diversified underwriting activity, as the platform's $358 million portfolio continues to scale.
All figures reflect the April 30, 2026 reporting snapshot unless otherwise noted. Past performance is not a reliable indicator of future results.
Capital Position
& Liquidity
As of April 2026, the capital base supporting Re's underwriting structures reflects a deliberate shift in composition following the deployment of $100 million into Cover Re SPC.
- $83.46M onchain — supporting Re-backed underwriting structures, representing 18% of total assets and 32% of the total capital base.
- $176.53M offchain — maintained as reserves within regulated insurance entities, accounting for 37% of total assets and 68% of the total capital base.
- $215.14M premium receivable — contracted written premium receivable on policies bound as of April 30, 2026, representing 45% of total assets. Actual receipts may vary based on policy performance, cessions, and other factors.
This capital position reflects a shift in the composition of the capital base during April. $100 million was moved from liquid, onchain backing into Cover Re SPC, where it is being deployed into diversified underwriting activity.
Together, the capital base now stands at approximately $260 million supporting $215.14 million in premium receivable. Offchain capital now represents the majority of the capital base, reflecting the scale of deployed underwriting activity relative to liquid reserves.
Diversified Across
Five Lines of Business
Throughout April 2026, capital was deployed across a diversified set of low-volatility, short-duration insurance programs structured around disciplined risk selection and underwriting margin generation, subject to loss experience and market conditions.
As reflected in the Insurance Strategy Breakdown, the $358 million underwriting portfolio remains diversified across multiple complementary lines of business.
The portfolio saw continued measured reallocation toward lower short-tail lines. Total portfolio premium increased by $9.5 million to $358 million, driven by continued treaty deployment and capital allocation into underwriting programs.
Portfolio Controls
& Exposure Monitoring
Re continues to actively manage portfolio exposure across lines of business, geography, duration, and counterparty concentration. The transition of capital into Cover Re SPC further underscores the importance of disciplined exposure monitoring as capital moves from liquid reserves into active underwriting.
Underwriting pacing remains governed by risk-adjusted return targets and concentration controls across all lines of business.
Workers' Compensation increased modestly to 18% of the portfolio while other segments adjusted slightly to maintain diversification. The continued shift reflects the application of concentration controls.
Where concentration, market conditions, or asymmetric risk warrants it, underwriting activity may be paused, constrained, or rebalanced without affecting contractual obligations.
reUSD & reUSDe
Performance Context
reUSD is designed to reflect a fixed spread generated by underwriting margins on regulated insurance. However, while the goal is to maintain a fixed spread, the spread can increase or decrease. As reflected in the dashboard, reUSD and reUSDe have shown measured performance during the reporting period, reflecting the gradual deployment of capital into regulated underwriting activity. Past performance is not a reliable indicator of future results.
- reUSD onchain capital reached $168.08 million (46.3% of total allocation), reflecting continued growth of the senior-tranche insurance capital instrument.
- reUSDe onchain capital stood at $18.55 million (5.1%), reflecting continued growth of Re's insurance exposure vehicle.
- Offchain USD totaled $176.53 million (48.6%), reflecting the movement of capital into regulated structures supporting active reinsurance contracts.
Relative to March, total deposits across reUSD and reUSDe remain elevated at $186.6 million, indicating continued demand for both instruments despite the transition of capital into active underwriting.
Reporting
Infrastructure
Re continues to invest in institutional-grade reporting infrastructure to improve visibility into capital deployment, portfolio composition, and risk exposure. A public dashboard combines onchain records to support monitoring and verification.
Total Value Locked decreased by $15.6 million to $475.13 million. This change was driven primarily by the temporary movement of capital from liquid backing into Cover Re SPC, where funds are being routed into trust to support underwriting activity.
Industry Landscape,
Q2 2026
Market conditions entering Q2 2026 are increasingly defined by abundant capital, rising competition, and a clear shift from pricing-driven returns to execution-driven performance. The April 1 renewal cycle reinforced a transition toward a more competitive phase of the underwriting cycle.
Global reinsurance capital reached a record $785 billion at the April 2026 renewals, with demand increasing by 10% year-over-year as insurers secured higher limits and broader coverage. This imbalance between capital supply and deployable risk has increased competition across the market.
Global property catastrophe rates declined by 12–15% at the January renewals and continued to soften into April, marking the steepest risk-adjusted decline since 2014. In the U.S., rates have fallen by roughly 14% through the April renewals.
While property lines softened, casualty markets remained comparatively stable, with capacity continuing to expand at the April renewals. Pricing across casualty lines has remained flat to modestly decreased, with reinsurers continuing to prioritize rate adequacy and loss trend monitoring, particularly in response to social inflation and litigation trends.
Capacity now exceeds available high-quality risk, intensifying competition. This surplus has contributed to double-digit rate reductions particularly in property and lower reinsurance layers, as both traditional and alternative capital providers actively compete to deploy capacity.
Alternative capital markets remain highly active, with catastrophe bond issuance reaching $6.7 billion in Q1 alone, while the outstanding market has grown to nearly $64 billion, the largest on record. The broader insurance-linked securities market has expanded to $120 billion in total capacity.
What's Next
April 2026 marks a shift from capital formation to deployment, with $100 million moved into Cover Re SPC to fund active underwriting and support a $358 million portfolio.
Heading into Q2, market conditions are becoming more competitive, with global insurance rates declining by approximately 5% in Q1 2026, reflecting competition across most lines.
In this environment, Re remains focused on disciplined capital deployment, selective underwriting, and portfolio diversification, while strengthening the transparency and infrastructure that underpin the platform.
We will continue to keep you updated as material developments occur.
— Re Management Team
Explore the
Platform
View real-time capital deployment, portfolio composition, and risk exposure on the Re dashboard.
View Dashboard →Disclosures
This blog post is for informational and educational purposes only and does not constitute investment, legal, tax, or financial advice. Nothing in this article should be construed as an offer or solicitation to buy or sell any security, token, or financial product.
Product disclosure. reUSD & reUSDe are available only to non-U.S. persons in specific geographies through Resilience Foundation Cayman LLC ("Resilience Foundation"), an Exempted Limited Guarantee Foundation Company incorporated in the Cayman Islands with Limited Liability with registered number IC-414560. Not guaranteed. Purchasing reUSD and reUSDe tokens involves significant risk, including total loss of principal and smart contract vulnerabilities. Past performance is not a reliable indicator of future results.
Affiliate disclosure. The "re" brand, the re protocol, and re.xyz are operated by Resilience Foundation Cayman LLC ("Resilience Foundation"), an Exempted Limited Guarantee Foundation Company incorporated in the Cayman Islands with Limited Liability with registered number IC-414560, together with its affiliate Resilience (BVI) Ltd and Resilience Inv SPC. Resilience Foundation, Resilience BVI, and Resilience Inv do not provide insurance or reinsurance services, do not act as insurance broker or agent, and do not hold an insurance license. All regulated reinsurance activities are conducted exclusively by Cover Reinsurance SPC Ltd. ("Cover Re SPC"), a Class B(iii) licensed exempted segregated portfolio company in the Cayman Islands, operating under the "Cover Re" brand at coverre.com.
Risk disclosure. Digital assets and blockchain-based products involve significant risk, including the potential loss of principal, smart contract vulnerabilities, liquidity constraints, and regulatory uncertainty. Any references to APR, returns, or performance are not guaranteed, and past performance is not a reliable indicator of future results.
Regulatory environment. The regulatory environment for digital assets, stablecoins, tokenized real-world assets, and onchain financial products is dynamic and continues to evolve across jurisdictions. The information in this post reflects the understanding as of the date of publication and may not reflect subsequent legal or regulatory developments. Readers should consult qualified legal, tax, and financial professionals before making any decisions.
Terms apply. For full terms, disclosures, and risk disclaimers, please see the Re website at https://re.xyz, Terms of Service, and Disclaimers.
