Parameter Climate, the parametric climate risk transfer focused underwriter and advisor, has completed a management buyout of seed investor SiriusPoint, as the latter continues to reduce its equity ownership in program and MGA businesses.
Parameter Climate was founded by long-standing weather risk transfer industry executive Marty Malinow and staffed by a very experienced senior team that had worked together over numerous years.
The company launched to provide specialist advisory, structured financial products, distribution, and underwriting services to the growing market for climate risk transfer, with parametric risk transfer at its heart.
Parameter Climate then secured a relationship and seed investment with specialty insurance and reinsurance player SiriusPoint roughly two years ago.
Now, the Parameter Climate management have bought SiriusPoint’s stake in the company, while SiriusPoint is set to continue supporting the firm through the provision of underwriting capacity.
“We thank SiriusPoint for its significant contributions to our launch two years ago and look forward to continuing to provide underwriting advisory to SiriusPoint and others,” Martin Malinow, Founder and CEO of Parameter Climate explained.
Scott Egan, CEO, SiriusPoint added “SiriusPoint is pleased to have contributed to the creation of Parameter Climate, which addresses an important protection gap in the climate and weather risk management market. While this transaction is consistent with our strategy to reduce our equity investments in programs and MGAs, we look forward to continuing to support Parameter Climate with underwriting capacity based on its strong underwriting results to date.”
Since its launch, Parameter Climate has also developed its own risk analytics platform, focused on climate exposures, with the ClimateDelta product now available for licensing as well.
In addition, the company is also adding advisory and brokerage services for both vertical-based protection buyers and capacity providers to its specialised climate risk transfer focused offering.
Malinow went on to say, “Our dialogues with both existing and new clients in a variety of industries illustrate a significant and growing need for climate and weather risk management, yet there remains a gap in advisory, intermediation and analytics. We created ClimateDelta to streamline the process of risk assessment, structuring and transaction management for both buyers and sellers, and look forward to using our 20+ years of market expertise to turn this need into transactions.
“With increased climate and weather volatility, risk transfer is becoming a strategic imperative for protection buyers in a number of industries and an important opportunity for a growing group of capacity providers,” Malinow added. “Parameter Climate will make this risk insurable and investable by combining the market’s most experienced advisory team with cutting-edge analytics.”