NormanMax parametric Lloyd’s syndicate 3939 commences underwriting

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NormanMax Insurance Holdings, the US based parametric insurance and reinsurance group launched by former Universal founder and CEO and parametric MGA New Paradigm co-founder, Bradley Meier, has now been approved for and launched its dedicated parametric syndicate 3939 at Lloyd’s.

normanmax-parametric-syndicate-lloydsThe company received in principle approval from Lloyd’s last year to launch what is the first parametric risk transfer syndicate in the market.

Syndicate 3939 has been launched in collaboration with Apollo Syndicate Management Ltd., which is set to manage syndicate 3939 for NormanMax.

NormanMax Syndicate 3939 has now commenced underwriting at Lloyd’s, with a focus on natural catastrophe parametric insurance and reinsurance products across the perils of hurricane, tropical cyclone, typhoon and earthquake.

The company said it intends to “combine 21st century data and technology to create parametric solutions for clients around the globe to address the natural disaster protection gap, at a time of increased climate risk and volatility.”

Stuart Newcombe, a former Active Underwriter for Munich Re Innovation Syndicate 1840, is set to act as Active Underwriter for NormanMax Syndicate 3939.

Newcombe’s expertise is expected to be crucial in guiding the syndicate’s strategy and underwriting, delivering on the commitment of NormanMax to innovative and efficient parametric re/insurance solutions.

NormanMax intends to leverage private capital and has partnered with Argenta Private Capital Limited, Alpha Insurance Analysts and the High Premium Group.

The company wants to “introduce a new age in catastrophe risk transfer at Lloyd’s,” and says that its private capital partners have been awarded freehold tenancy.

In addition, NormanMax said this morning that it has received backing from Helios Underwriting, the investment focused company that selects syndicates to back by deploying capital to support them.

Bradley Meier, CEO of NormanMax commented on the news, “This launch signifies the official start of the global parametric insurance revolution, and we are pleased to be partnering with Apollo on this exciting journey. As the landscape of risk has changed over the past three hundred years, so has Lloyd’s. Parametric insurance represents another milestone in Lloyd’s rich history of delivering relevant innovative products similar to when business interruption insurance was introduced by Lloyd’s in the early 20th century.

“I want to thank the amazing team of experienced (re)insurance professionals that I’ve been fortunate to be able to bring together who will be singularly focused on parametric climate solutions for natural disasters. We are especially excited to be joining the Lloyd’s marketplace and for the opportunity to access Lloyd’s global licenses and reach, to deliver parametric (re)Insurance products on a worldwide scale. With a commitment to best-in-class service, we are set to transform expectations and redefine possibilities within the parametric (re)insurance industry.

“I also want to thank the Lloyd’s team for all their help and support in preparing S3939 for its launch.”

Guy Carpenter and GC Securities advised on the Lloyd’s application and led the capital raise and reinsurance placement for NormanMax Syndicate 3939.

Vicky Carter, Global Capital Solutions, International said, “Guy Carpenter is delighted to have worked closely with the NormanMax team, using our in-depth capabilities in structuring and capital management to create the first parametric syndicate at Lloyd’s. Parametric products provide an innovative alternative risk-transfer solution that deliver transparency and ensure speed of payment. Such solutions can bridge critical insurance gaps, be distributed efficiently and at scale, and address issues around trapped capital. Demand for parametric products is growing and Guy Carpenter is committed to playing a central role in supporting the development of this market.”

Andrew Gray, Apollo’s Director of Strategic Partner Syndicates added, “This is a hugely exciting development for Apollo, NormanMax, and Lloyd’s, as we bring innovative, new natural catastrophe parametric products to the market. We are delighted to have been able to support NormanMax’s entry to Lloyd’s and very excited for what the future holds.”

David Ibeson, Apollo Group CEO also said, “This latest addition to our partnership family is further demonstration of our unique model of delivering a range of offerings to our clients by developing business with innovative and talented partners.”

Martin Reith, CEO, Helios Underwriting commented, “Helios Underwriting PLC is delighted to provide capital support for the launch of the NormanMax syndicate offering a diverse portfolio of parametric property products. This exciting development will provide critical and accessible coverage for clients against the occurrence of a specific, trigger based event for natural catastrophe exposures. We are thrilled to partner with Brad and his team to offer these pioneering solutions at Lloyd’s.”

Emily Apple of Alpha Insurance Analysts stated, ”Alpha is delighted to be a cornerstone capital provider to the new parametric NormanMax syndicate 3939. It offers a different and interesting approach to writing primary layers of catastrophe-exposed business around the world. We look forward to growing our position as the business develops.”

Robert Flach, Managing Director, Argenta Private Capital Limited (APCL) further said, “Argenta Private Capital is delighted to partner with NormanMax to bring syndicate 3939 to the market. This launch demonstrates the key role of private capital in the Lloyd’s market and our ability to access that strong, diverse capital base. This is a great opportunity for private investors to enjoy the returns from innovative natural catastrophe parametric underwriting. We are also pleased to have helped them establish their own corporate member providing underwriting capital alongside our private clients.”

Dhruv Patel OBE, spokesperson for the High Premium Consortium, that provided private capital capacity to NormanMax’s startup Syndicate 3939, stated, “The High Premium Consortium is delighted to provide private capital capacity to support Syndicate 3939. This milestone marks a significant step forward in our commitment to fostering innovation and growth within the Lloyd’s market.” He continued, “We are grateful to consortium member David Johns Powell, who negotiated the terms with NormanMax on which the capacity is provided.” Patel highlighted the innovative nature of NormanMax’s Syndicate 3939, saying, “We are particularly excited about the parametric opportunity that Syndicate 3939 brings to the Lloyd’s market.”

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