Global specialty insurer and reinsurer SiriusPoint Ltd has engaged in a new strategic partnership with Arden Insurance Services LLC, a US commercial property managing general underwriter.

SiriusPoint will provide capacity to Arden, which has launched a new wildfire-exposed risks programme that includes embedded parametric coverage.

Arden’s new Consolidated Fire Insurance Policy will be offered initially in California with eventual expansion into other wildfire-exposed states. The policy provides coverage alongside Arden’s existing all-risk offering.

Arden specialises in solutions for multifamily habitation risks with an in-force portfolio of more than 120,000 buildings insured. This class of business has been particularly affected by the market’s decision to eliminate or severely sublimit wildfire coverage in all-risk policies in the regions west of the Rockies, where Arden operates.

Brian Cohen, Arden Insurance Services CEO and cofounder, said: “The recent LA wildfires further exacerbated the insurability crisis for properties located in wildfire-exposed areas, and CFIP provides comprehensive coverage for this underserved market.

“Our broker partners in California and other parts of the western US have been asking for a solution that would provide peace of mind in a distressed market. We are excited to partner with SiriusPoint to deliver for the industry.”

Patrick Charles, head of North America Insurance at SiriusPoint, said: “We’re proud to become a capacity partner to Arden, working together to meet critical market needs with a programme that is both creative and impactful.

“Arden’s thoughtful programme strategy, backed by a decade of proven success in this class of business, is filling a vital gap in an underserved segment. This partnership not only supports the insurance ecosystem but also contributes to the broader economic resilience of California."

Augment Risk facilitated the capacity deal between SiriusPoint and Arden.

Andrew Matson, Augment Risk CEO, added: “The Consolidated Fire Insurance Programme offers an efficient, streamlined approach to wildfire insurance. The solution highlights how innovative capital structuring can accelerate the delivery of new risk transfer solutions.

“Augment Risk’s parametric and [managing general agent] teams worked alongside Arden and SiriusPoint to structure the capital framework supporting this programme, and we are grateful to them for their trust throughout the process.”