Paratus Holdings Limited, an insurance group focused on decarbonisation, is to expand its commercial operations and the introduction of its highly innovative renewable power price-risk insurance solution, pending regulatory approval.
The announcement follows the completion of a growth equity investment from Ara Partners, a global private equity and infrastructure firm that specialises in industrial decarbonisation investments.
Paratus commercialised the world’s first energy and freight insurance policies since it was founded in 2020, the firm noted.
It has also developed a proprietary insurance policy that protects producers and consumers of renewable power and transition fuels from energy price risks.
“While the energy transition presents significant opportunities, complex risk management challenges remain for producers and consumers of renewable energy and transition fuels,” said Gus Majed, Group CEO & Founder of Paratus.
He continued: “Paratus began with a simple belief that there must be a better way for industry to protect against energy price volatility. Our proprietary insurance-based risk management product materially improves returns compared to traditional alternatives.
“With Ara’s investment, partnership, and network, we will be able to significantly scale the Paratus offering, creating enhanced value opportunities for our customers and realising our significant potential.”
Christopher Picotte, Partner at Ara Partners, shared the firm’s excitement for its partnership with Paratus. He commented: “Renewable electricity and green fuels are evolving from niche products reliant on subsidies to dominant, supply/demand-driven products across global energy markets.
“Paratus has pioneered an innovative market-based solution that will give energy producers and consumers an economical and flexible way to manage risk exposure and advance their commercial strategies.
“Through our partnership, Paratus will be able to scale quickly while playing a critical role driving the universal adoption of low/zero-carbon energy. We are delighted to partner with Gus and the management team and to support the growth of the company.”
