Parameter Climate completes buyout of SiriusPoint stake - Reinsurance News
Parameter Climate completes buyout of SiriusPoint stake - Reinsurance News
Climate risk advisory, distribution, and analytics firm, Parameter Climate, has announced a management buyout of its seed investor, SiriusPoint, two years after launch.
SiriusPoint acquired a significant ownership stake in Parameter Climate back in October of 2021 as part of a strategic partnership between the two firms. Now, following the buyout, Parameter Climate said that SiriusPoint will continue to support it with underwriting capacity.
The New York City headquartered firm also explained that 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 climate risk transfer analytics platform.
Martin Malinow, Founder and CEO of Parameter Climate, commented, “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.
“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+ years of market expertise to turn this need into transactions.”
Malinow added, “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. Parameter Climate will make this risk insurable and investable by combining the market’s most experienced advisory team with cutting-edge analytics.”
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 programs and MGAs, we look forward to continuing to support Parameter Climate with underwriting capacity based on its strong underwriting results to date.”
Related Knowledge Center: Climate economics
Climate change is now a driver of the world’s economy. The impact is profound:
- Catastrophic weather events — hurricanes, floods, droughts, high temperatures — are more frequent and more extreme. The cost can be measured in both the initial damage caused and the longer-term impact on the economy.
- Vulnerable communities are increasing climate-related investments, hardening infrastructure and taking other protective measures.
- Investment in carbon capture and storage technologies is increasingly rapidly.
- Governments are making investments and crafting regulations to reduce emissions of carbon dioxide and other greenhouse gases.
On top of all of this is the cost of uncertainty. As the Fourth National Climate Assessment, released in 2018 by the U.S. Global Change Research Program, says, “The assumption that current and future climate conditions will resemble the recent past is no longer valid.”