Global specialty insurer and reinsurer, SiriusPoint Ltd., has acquired a significant ownership stake in full-service climate underwriting and distribution advisory firm, Parameter Climate, as part of a strategic partnership between the two companies.
As part of the deal, SiriusPoint will also provide multiyear capacity and paper, with additional capacity secured from another international reinsurance company.
Headquartered in New York City, start-up Parameter Climate is founded by Chief Executive Officer (CEO) Martin Malinow, a pioneer in the parametric climate marketplace.
Malinow’s career in financial services has spanned three decades, beginning in the capital markets as a fixed-income derivatives trader and portfolio manager before joining the parametric climate market in the late 90s.
Prior to Parameter Climate, he founded two companies in the space – XL Weather and Energy and Galileo – before taking over as President of Sompo Global Weather.
Parameter Climate brings a veteran team to focus on developing an end-to-end business model which will offer advisory, structured financial products, distribution, and underwriting services to the expanding market for climate risk transfer.
“We see a secular opportunity in helping to build a new market in climate risk transfer that will be integral to the continued growth and sustainability of the global economy,” said Malinow.
“We are excited to partner with SiriusPoint on this opportunity – they bring the balance sheet capacity and financial resources for Parameter Climate to provide underwriting and distribution leadership to the growing climate market.”
Sid Sankaran, CEO of SiriusPoint, commented: “With this partnership, SiriusPoint is investing in human expertise and data driven technology solutions to enable the transfer of climate risk to the insurance and capital markets. Parameter Climate’s approach and their highly-experienced parametric team are providing a solution for the ‘E’ in ESG. We are delighted to be a part of that vision.”
Malinow added: “From global corporations looking to manage their climate exposures, to insurers and institutional investors wanting to create solutions to support these ESG challenges, Parameter Climate will play a key role in helping this diverse set of participants analyze, underwrite, package and distribute climate risk efficiently.”