Howden launches technology-driven capital markets unit HCM

Independent insurance broker Howden Group Holdings has launched a new capital markets advisory practice to advise clients on mergers and acquisitions (M&A), capital raising, restructuring, risk securitisation and yield enhancement solutions, among others.

The unit has been set up under its data and analytics division HX, with the aim to develop innovative products for the re/insurance sector.

The company stated that the increasing confluence of insurance and capital markets has created the opportunity to provide advisory, structuring, and arrangement services. Howden sees opportunities to create long-term, sustainable value in the burgeoning environmental, social, and governance (ESG) arena.

HCM will provide Howden clients with further access to investment capital which, alongside traditional insurance capacity, can result in lower risk transfer costs and better outcomes.

David Flandro, head of HX Analytics, said: “There is an emerging demand in insurance for a nimbler, alternative adviser who is internationally-focussed, with insights underpinned by technology and analytics. With HX’s data-driven IP, HCM will deliver the most impactful solutions available including a full range of risk and capital advisory services for investors and clients. HCM’s purpose is to identify new opportunities and enhance firm value for all stakeholders.”

Mark Shumway, executive director and head of advisory, HX, explained: “Product innovation is key in delivering solutions not only for our clients but also for the wider world, as we look to build a more sustainable future. A capital markets advisory capability enables us to do more in this space, such as developing risk management solutions for humanitarian aid and sustainable energy projects.”

Elliot Richardson, chairman of Howden Reinsurance Brokers, added: “The market is currently the most dislocated it has been in a generation, with rate hardening gathering pace against the backdrop of a global pandemic and industry consolidation. We see this as a real opportunity to create solutions for investors, be they insurers, MGAs or insureds, through HCM using our data-led approach via HX.”