US parametric re/insurer gains the initial nod from the Lloyd’s Council to launch a new syndicate, focused on climate change-affected cat business.
NormanMax Insurance Holdings, a parametric underwriter of climate risk-hit natural catastrophe business, has received ‘approval in principle’ from Lloyd’s to launch a syndicate in 2024.
NormanMax Syndicate 3939, to be managed by Apollo Syndicate Management, would aim to start underwriting in April 2024, focused on natural catastrophe parametric re/insurance products.
The firm said it would “combine 21st century data and technology to create parametric solutions for global clients”.
It added that clients “are underserved by traditional re/insurance products, at a time of increased climate risk and volatility”.
GC Securities, the capital markets arm of reinsurance broker Guy Carpenter, is acting as financial advisor to NormanMax.
NormanMax is led by CEO Bradley Meier, founder and former chairman and CEO of both Universal Insurance Holdings and Universal Property and Casualty Insurance Company, as well as co-founder of parametric underwriting firm New Paradigm.
“We are thrilled at the opportunity to assist clients globally with parametric (re)insurance solutions and bring this business into Lloyd’s,” Meier said.
“It is my belief that we are only at the beginning of the global parametric insurance revolution, and we are pleased to be partnering with Apollo on this exciting journey. The ability to provide worldwide access to parametric insurance solutions that utilize both public and proprietary data via Syndicate 3939 is a great first step in the mainstream adoption of parametric products,” he said.
“NormanMax syndicate 3939 will be distributing its products globally, including in many underserved markets that traditionally lack a broad spectrum of insurance solutions. We are excited to be able to begin the process of serving these markets via the reach and financial security of the Lloyds Market,” Meier added.
Andrew Gray, Apollo’s director of strategic partner syndicates, commented: “We are incredibly excited to be partnering with NormanMax to support the delivery of their parametric strategy at Lloyd’s. Their innovative new parametric products can support closing the insurance protection gap for customers all over the world, providing piece of mind and speed of claims payment.
“Apollo’s track record of building successful and innovative businesses at Lloyd’s makes us the perfect long-term partner for organisations like NormanMax who are looking to benefit from the strengths of the Lloyd’s market whilst leveraging Apollo’s innovative and partnership mindset.
“We continue to strengthen and expand our offering of Strategic Partner Syndicates, providing greater opportunities for our partners, clients, and capital providers. We look forward to an exciting relationship with NormanMax and a successful 2024.”