SiriusPoint partnership with Parameter Climate
SiriusPoint Ltd, the Bermuda-headquartered global specialty re/insurer, has announced a strategic partnership with Parameter Climate, a full-service climate underwriting and distribution advisory firm.
As part of the transaction, SiriusPoint said, it has purchased a significant ownership stake in Parameter Climate in addition to providing multiyear capacity and paper. Additional capacity has been secured from another leading global reinsurer.
Parameter Climate, headquartered in New York City, is founded by Martin Malinow, a pioneer in the parametric climate market.
SiriusPoint said that the company brings a veteran team to focus on establishing an end-to-end business model which will provide advisory, structured financial products, distribution and underwriting services to the burgeoning market for climate-risk transfer.
This is increasingly important as corporations and public entities undertake the effort to calculate, disclose and eventually manage their environmental, social and governance (ESG) risks, of which climate is a key driver, it said.
Mr Malinow, chief executive officer of Parameter Climate, said: “We see a secular opportunity in helping to build a new market in climate-risk transfer that will be integral to the continued growth and sustainability of the global economy.
“We are excited to partner with SiriusPoint on this opportunity — they bring the balance-sheet capacity and financial resources for Parameter Climate to provide underwriting and distribution leadership to the growing climate market.”
Sid Sankaran, chief executive officer of SiriusPoint, said: “With this partnership, SiriusPoint is investing in human expertise and data-driven technology solutions to enable the transfer of climate risk to the insurance and capital markets.
“Parameter Climate's approach and their highly experienced parametric team are providing a solution for the ‘E’ in ESG. We are delighted to be a part of that vision.”
Mr Malinow added: “From global corporations looking to manage their climate exposures to insurers and institutional investors wanting to create solutions to support these ESG challenges, Parameter Climate will play a key role in helping this diverse set of participants analyse, underwrite, package and distribute climate risk efficiently.”
SiriusPoint said that Mr Malinow has had a career in financial services spanning three decades, first in the capital markets as a fixed-income derivatives trader and portfolio manager before joining the nascent parametric climate market in the late 1990s.
He has co-founded two companies in the space before Parameter Climate — XL Weather & Energy and Galileo — before assuming the role of president of Sompo Global Weather.
SiriusPoint Ltd is a global re/insurer with headquarters in Bermuda and offices around the world. The company writes a global portfolio of accident and health, specialty, property and run-off.
Parameter Climate Inc is an ESG+ start-up that it says will combine the market’s pre-eminent parametric climate-risk transfer team with cutting-edge analytics, enabling it to digitise and scale the distribution and underwriting of parametric climate risks.