12 May 2021News

ArgoGlobal partners with Tierra Underwriting as demand for green finance grows

ArgoGlobal, the Lloyd’s insurer and member of Argo Group, has partnered with Tierra Underwriting, the managing general agent (MGA) that provides long-term credit insurance to support green project finance transactions.

ArgoGlobal will provide $25 million in underwriting capacity to support the MGA, which works with banks involved in the financing of projects that are environmentally beneficial and help transition the world to a low carbon future.

Andrew Beechey, managing director at Tierra Underwriting, has worked in the credit insurance market for 25 years and holds a master’s degree in climate change, policy and development. Gerard Pieters, a director at Tierra, joined from NORD/LB, having worked for 15 years in the renewable energy project finance market.

The partnership means ArgoGlobal joins Tierra Underwriting in its commitment to supporting transactions that enable a transition to a lower carbon economy.

Jeremy Shallow, head of specialty at ArgoGlobal, said: “The interest from our clients in the green finance sector is growing rapidly, and we want to be at the forefront of this transition. We are keen to both support positive change globally and to take advantage of the commercial opportunity this represents.”

Beechey said: “Renewable energy has become more efficient and cheaper in the past decade, as the global energy mix adjusts to a more sustainable future. Insurance and finance have a key role to play in supporting this energy transition and helping drive the world towards a greener, healthier planet. Our partnership with ArgoGlobal allows us to be part of this solution.”

As part of its environment, social and governance (ESG) strategy, Argo Group said it is committed to developing innovative new solutions and promoting existing products and services that support the United Nations Sustainable Development Goals.

“The company aims to integrate ESG considerations into its underwriting process and partner with those who share our belief in meeting the needs of the present without compromising the future,” explained Shallow.