SiriusPoint Ltd., the Bermuda-based specialty insurer and reinsurer, has announced a strategic partnership with Parameter Climate, a climate underwriting and distribution advisory firm.
As part of the transaction, SiriusPoint 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. (Financial details of the share acquisition were not disclosed, nor was the name of the other capacity provider).
Parameter Climate, headquartered in New York City, was founded by Martin Malinow, a pioneer in the parametric climate market. 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 major driver.
“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,” commented Malinow, chief executive officer of Parameter Climate. “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.”
“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,” said Sid Sankaran, chief executive officer of SiriusPoint.
“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 analyze, underwrite, package and distribute climate risk efficiently,” said Malinow.
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 prior to Parameter Climate – XL Weather & Energy and Galileo – before assuming the role of president of Sompo Global Weather.
Source: SiriusPoint
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