Advisory, distribution and underwriting firm, Parameter Climate has announced a profit in 2022, the businesses first full year following its initial launch by its veteran team in late 2021.
The firm, headquartered in New York, witnessed strong performance in both transaction volume and portfolio returns throughout 2022.
Additionally, the company has also increased its dedicated capacity for 2023 to meet new market opportunities throughout the year.
Martin Malinow, Founder and CEO of Parameter Climate, commented: “We appreciate the support from our capacity partners as well as protection buyers and brokers, many of whom have worked closely with our team for over two decades.
“Our first year confirmed our belief that the further development of the climate market benefits from our unique end-to-end approach of combining data-driven, analytics-informed risk advisory and structuring with experienced distribution and access to significant risk capital. Going forward, we will use these resources to make customized protection available to an expanded number of industries while attracting additional capital sources.”
He continued: “2022 was an extraordinarily turbulent year for the global economy and broader financial markets, including the climate market. Extreme weather events – including droughts, temperature extremes and volatile wind speed variations – combined with geopolitical events to create difficult conditions for global energy companies, traditionally the most active buyers of climate and weather protection, while crystallizing for other industries the financial and business risks arising from climate trends and extreme weather events.
“Increased public attention to climate volatility is also leading to stronger demands for disclosure from investors and regulators which Parameter Climate believes will drive demand for protection.”
Furthermore, Parameter Climate added that during 2023 it plans to launch its proprietary software platorm, ClimateDelta. The platform will be used to structure, value and administer both individual parametric climate transactions and portfolios of transactions.
“ClimateDelta will make the climate market accessible to a vastly increased number of protection buyers, capacity providers and intermediaries who do not currently have the confidence to commit significant capital based on information derived and stored on spreadsheets,” added Malinow.
“ClimateDelta is the codification of our unparalleled two plus decades of knowledge and experience, purpose-built to ensure that climate risk is both insurable and investable.”
