Syndicate 3939 will be led by Stuart Newcombe, former active underwriter for Munich Re Innovation Syndicate 1840, as its active underwriter.

NormanMax Insurance Holdings, a US based parametric re/insurance firm, has launched Lloyd’s Syndicate 3939, managed by Apollo.

Lloyd's view from below

The firm said it is the first syndicate devoted exclusively to natural disaster parametric re/insurance solutions, “heralding a new era of parametric re/insurance”.

Re/insured perils are to include hurricane, tropical cyclone, typhoon and earthquake, to address the nat cat protection gap.

Stuart Newcombe, former active underwriter for Munich Re Innovation Syndicate 1840, will act as active underwriter for NormanMax Syndicate 3939.

NormanMax is led by CEO Bradley Meier, former founder, chairman and CEO of both Universal Insurance Holdings and Universal Property and Casualty Insurance Company.

Meier was also the co-founder of parametric underwriting specialist New Paradigm Group.

NormanMax said it would combine 21st century data and technology to create parametric solutions for clients around the globe at a time of increased climate risk and volatility.

The firm has partnered with Apollo’s Lloyd’s managing agency services to launch the new syndicate.

NormanMax said it receives private capital through partnerships with Argenta Private Capital, Alpha Insurance Analysts and the High Premium Group

Its private capital partners have been awarded freehold tenancy, a recognition that solidifies their long-term commitment and partnership.

NormanMax added that has received strategic support from Helios Underwriting, which has experience curating other syndicates at Lloyd’s.

Guy Carpenter and GC Securities advised on the Lloyd’s application and led the capital raise and reinsurance placement, the firm said.

Vicky Carter, Guy Carpenter’s chairman of 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.”

Carter added: “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.”

NormanMax’s CEO, Meier, commented: “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.”

Andrew Gray, Apollo’s director of strategic partner syndicates, said: “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, 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, commented: “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 capital provider The High Premium Consortium, added:

“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.”

“We are grateful to consortium member David Johns Powell, who negotiated the terms with NormanMax on which the capacity is provided. We are particularly excited about the parametric opportunity that Syndicate 3939 brings to the Lloyd’s market.”