Buckle upsizes term loan to support growth of its insurance platform

By Edlyn Cardoza

Buckle, a digital financial services company for the gig economy, has completed a $15 million upsizing of its term loan with participation from Siguler Guff & Company, LP, and existing lender Hudson Structured Capital Management Ltd. (conducting its re/insurance business as HSCM Bermuda). This increases the total to $35 million. The proceeds of the deal provide capital to support the company’s distribution of its signature gig insurance products and the significant business growth on its carriers, along with Buckle’s strategy of utilizing a portfolio of reinsurance partnerships across all programs. This transaction brings the total capital raised by Buckle to date to approximately $115 million.

“Today’s announcement underscores Buckle’s unique ability to attract participants in this emerging segment and validates our distinctive approach as we advocate for the economic independence of our drivers,” said Marty Young, chief executive officer of Buckle. “The recent expansion of our gig product across Maryland and Nevada, as well as our ongoing support of our members helps us bolster the success of these drivers.”

“We’re thrilled to begin a relationship with Buckle, an emerging leader in the gig insurance space. The deep industry experience of the team, scalability of the platform, and its focus on a unique segment of the market makes Buckle an exciting partner for our investment,” said Ray Miller, managing director, Credit and Special Situations at Siguler Guff.

“Our ongoing relationship with Buckle has gone from strength to strength, and we are pleased to provide additional surplus capital to Buckle as they achieve their vision and growth,” said Rachel Bardon, partner and chief actuary at HSCM Bermuda.

Buckle is making insurance affordable and easy for rideshare and delivery drivers by addressing gaps in conventional policies that leave gig workers underinsured. The company also partners with firms that support other transportation audiences to align the efforts of stakeholders across the insurance ecosystem.

In 2019, Buckle launched its core rideshare insurance policy that combines personal and commercial coverages. In 2020, the company announced the acquisition and recapitalization of Gateway Insurance Company, and in 2021 acquired and recapitalized American Service Insurance Company and American Country Insurance Company to obtain the 49 state insurance licenses the company is utilizing today. Through Gateway, Buckle is expanding insurance coverage to include transportation network companies (TNCs), delivery network companies (DNCs), and traditional taxi, limo, and livery businesses.

Over the past three months, Buckle has successfully extended all expiring reinsurance with its incumbent reinsurers and added a key new reinsurer.

“We are proud of the breadth and depth of our ongoing reinsurance partnerships. These renewals speak to the strength of Buckle’s business model, the value our reinsurers see in our approach, and the expertise we bring to the table,” said James Camerino, head of strategic partnerships for Buckle.