SiriusPoint sells stake in climate risk advisor to owners

SiriusPoint has sold its stake in Parameter Climate, a climate risk advisory, distribution and analytics firm which it helped to launch two years ago.

The Bermuda-based re/insurer will continue to support Parameter Climate with underwriting capacity. The size of the stake was not disclosed.

Link: https://www.bermudareinsurancemagazine.com/news/siriuspoint-takes-stake-in-parameter-climate-7291

The sale of the seed investment is in line with SiriusPoint’s previously announced policy of reducing the number of investments it holds in third party businesses. Last week, the specialty re/insurer sold its stake in managing general agency Banyan Risk to its owners.

Link: https://www.bermudareinsurancemagazine.com/news/banyan-risk-completes-transfer-of-ownership-from-siriuspoint

Parameter Climate, based in New York, said it is building on its initial successes by adding advisory and brokerage services for both vertical-based protection buyers and capacity providers, in addition to offering licensing of ClimateDelta, its state-of-the-art climate risk transfer analytics platform.  

 “We thank SiriusPoint for its significant contributions to our launch two years ago and look forward to continuing to provide underwriting advisory to SiriusPoint and others,” said Martin Malinow, founder and chief executive officer of Parameter Climate.  

 Scott Egan, CEO, SiriusPoint said: “SiriusPoint is pleased to have contributed to the creation of Parameter Climate, which addresses an important protection gap in the climate and weather risk management market.

“While this transaction is consistent with our strategy to reduce our equity investments in programmes and MGAs, we look forward to continuing to support Parameter Climate with underwriting capacity based on its strong underwriting results to date.” 

 Malinow added: “Our dialogues with both existing and new clients in a variety of industries illustrate a significant and growing need for climate and weather risk management, yet there remains a gap in advisory, intermediation and analytics.

“We created ClimateDelta to streamline the process of risk assessment, structuring and transaction management for both buyers and sellers, and look forward to using our 20-plus years of market expertise to turn this need into transactions.  

 “With increased climate and weather volatility, risk transfer is becoming a strategic imperative for protection buyers in a number of industries and an important opportunity for a growing group of capacity providers,” Malinow added. “Parameter Climate will make this risk insurable and investable by combining the market’s most experienced advisory team with cutting-edge analytics.”