SiriusPoint invests in climate focused start-up Parameter Climate

Global specialty re/insurer SiriusPoint has acquired a significant ownership stake in Parameter Climate, a climate underwriting and distribution advisory firm.

In addition to buying the stake in Parameter Climate, it will provide multiyear capacity and paper. Additional capacity has been secured from another leading global reinsurer.

Parameter Climate was founded by Martin Malinow, a pioneer in the parametric climate market. The company provides advisory, structured financial products, distribution, and underwriting services to the burgeoning market for climate risk transfer.

This is increasingly important as corporations and public entities undertake the effort to calculate, disclose and eventually manage their Environmental, Social, and Governance (ESG) risks, of which climate is a major driver.

“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, CEO of Parameter Climate. “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.

“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.”

Sid Sankaran, CEO of SiriusPoint, said: “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.”