Accelerant (NYSE: ARX) announced a partnership with newly formed WoodStar Reciprocal Exchange, a reciprocal insurance company capitalized with more than $220 million in surplus notes and capital from third-party investors.

WoodStar's capital sources include Kilter Finance, a KKR-backed specialty finance company, and funds managed by Blue Owl Capital (NYSE: OWL). WoodStar received an AM Best financial strength rating of "A-" (Excellent) and will provide underwriting capacity exclusively for the Accelerant Risk Exchange.

Accelerant holds no ownership interest in WoodStar but will provide underwriting, distribution, claims, and other services under contractual arrangements. WoodStar's attorney-in-fact is majority owned by Accelerant, along with unrelated minority investors.

WoodStar is expected to begin writing direct business on the Accelerant Risk Exchange during 2027.

Jeff Radke, CEO of Accelerant, said the partnership represents "another step forward" for the platform, adding that the company continues to "develop attractive structures for institutional investors and other risk capital providers."

Dan Knipe, CIO of Kilter Finance, cited Accelerant's "underwriting capabilities, deep MGA network, and differentiated approach to aligning risk and capital" as factors in the partnership decision.

Bharath Subramanian, Managing Director at Blue Owl Capital, said the structure is "designed for long-term, capital-efficient growth" and expressed intent to provide capital for small and medium-sized U.S. businesses through the Accelerant Risk Exchange.

WoodStar will focus on specialty commercial lines coverages for small and medium-sized businesses, according to a press release statement.