Ariel Re insures solar performance guarantee deal for NovaSource
Ariel Re, a subsidiary of Bermuda-based Argo Group, has insured the contractual performance guarantees (PeGu) of a newly formed company, NovaSource Power Services, through its Lloyd’s of London Syndicate 1910.
Ariel Re provided solar power outage insurance to backstop the performance guarantees of the operations and maintenance services provider at utility-scale solar plants.
NovaSource Power Services was recently acquired by the NovaSource management team and Clairvest Group from SunPower Corporation. The coverage enhances the reliability, revenue certainty and financial risk of NovaSource's solar power investments.
Hub International and Miller Insurance were the insurance brokers for the transaction.
Jan Napiorkowski, Ariel Re global head of clean energy, said: “As the solar market continues to grow and mature, institutional investors will benefit from insurance products that shift the liabilities that arise from more complex performance guarantees to strong counterparties like Ariel Re. The Clairvest and NovaSource deal team fostered an open dialogue and sharing of information that enabled us to not only understand the risk, but also tailor a custom risk transfer solution. Ariel Re is pleased to help NovaSource and Clairvest achieve their strategic goals.”
Jack Bennett, CEO of NovaSource, said: “We’re excited to partner with Ariel Re to offer this product to our customers and the industry. Our laser-focused field teams, supported by a robust spare parts strategy with performance guarantees backstopped by the groundbreaking Ariel Re insurance product, provide customers with a high degree of confidence their assets will perform and generate maximum revenue.”
