SiriusPoint to provide Arden with capacity for new US wildfire parametric solution

Bermuda-based insurer and reinsurer SiriusPoint has partnered with Arden Insurance Services LLC, a United States-based commercial property managing general underwriter (MGU), as a capacity provider for the MGU’s newly launched wildfire-exposed risks program, which includes embedded parametric coverage.

Arden’s new Consolidated Fire Insurance Policy (CFIP) will initially be offered in California, with eventual expansion into other wildfire-exposed states, and will provide coverage alongside the MGU’s existing all-risk offering.

Arden specialises in solutions for multi-family habitation risks with an in-force portfolio of over 120,000 buildings insured.

The MGU explained that this business class has been particularly affected by the market’s decision to eliminate or severely sub-limit wildfire coverage in all-risk policies in the regions West of the Rockies, where it operates.

Augment Risk facilitated the capacity deal between SiriusPoint and Arden.

Brian Cohen, Chief Executive Officer (CEO) and Co-Founder, Arden Insurance Services, said, “The recent LA wildfires further exacerbated the insurability crisis for properties located in wildfire-exposed areas, and CFIP provides comprehensive coverage for this underserved market.

“Our broker partners in California and other parts of the Western U.S. have been asking for a solution that would provide peace of mind in a distressed market. We are excited to partner with SiriusPoint to deliver for the industry.”

Patrick Charles, Head of North America Insurance, SiriusPoint, commented, “We’re proud to become a capacity partner to Arden, working together to meet critical market needs with a program that is both creative and impactful.

“Arden’s thoughtful program strategy, backed by a decade of proven success in this class of business, is filling a vital gap in an underserved segment. This partnership not only supports the insurance ecosystem but also contributes to the broader economic resilience of California.”

Andrew Matson, CEO, Augment Risk, added, “The Consolidated Fire Insurance Program offers an efficient, streamlined approach to wildfire insurance. The solution highlights how innovative capital structuring can accelerate the delivery of new risk transfer solutions.

“Augment Risk’s parametric and MGA teams worked alongside Arden and SiriusPoint to structure the capital framework supporting this program, and we are grateful to them for their trust throughout the process.”