NormanMax launches parametric Syndicate 3939 in partnership with Apollo

NormanMax Insurance Holdings, the US-based parametric re/insurance group, has launched Syndicate 3939, managed by insurance group Apollo.

NormanMax Syndicate 3939 has reportedly commenced underwriting and will offer global parametric re/insurance solutions, specifically designed for hurricanes, tropical cyclones, typhoons, and earthquakes to address the natural disaster protection gap.

NormanMax explained that this is the first syndicate devoted exclusively to natural disaster parametric re/insurance solutions, “heralding a new era” of parametric re/insurance.

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

NormanMax observed that Newcombe’s extensive expertise will be crucial in guiding the Syndicate’s strategy, underwriting, and delivering its commitment to innovative and efficient parametric re/insurance solutions.

“Private capital is the historic cornerstone of the Lloyd’s market, and NormanMax is leveraging this foundation through partnerships with Argenta Private Capital Limited, Alpha Insurance Analysts and the High Premium Group to introduce a new age in catastrophe risk transfer at Lloyd’s,” the firm added.

NormanMax has also revealed that its private capital partners have been awarded freehold tenancy, a “significant recognition” that solidifies their long-term commitment.

Additionally, NormanMax has received strategic support from Helios Underwriting, while Guy Carpenter and GC Securities successfully advised on the Lloyd’s application and led the capital raise and reinsurance placement.

Bradley Meier, CEO of NormanMax, 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.

Meier continued, “I want to thank the amazing team of experienced (re)insurance professionals that I’ve been fortunate to be able to bring together who will be singularly focused on parametric climate solutions for natural disasters.

“We are especially excited to be joining the Lloyd’s marketplace and for the opportunity to access Lloyd’s global licenses and reach, to deliver parametric (re)Insurance products on a worldwide scale.

“With a commitment to best-in-class service, we are set to transform expectations and redefine possibilities within the parametric (re)insurance industry. I also want to thank the Lloyd’s team for all their help and support in preparing s3939 for its launch.”

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, added, “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 said, “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.”

Robert Flach, Managing Director, Argenta Private Capital Limited, noted, “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 the High Premium Consortium, stated, “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.”

He continued, “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.”

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