NormanMax launches NatCat parametric Syndicate 3939 in partnership with Apollo

NormanMax launches NatCat parametric Syndicate 3939 in partnership with Apollo

NormanMax launches NatCat parametric Syndicate 3939 in partnership with Apollo 787 793 Apollo Group

London, 22nd May 2024 – NormanMax Insurance Holdings, the US based parametric (re)insurance group, has launched Syndicate 3939, managed by Apollo, the market leading innovative integrated insurance group.

NormanMax Syndicate 3939 has commenced underwriting, focusing on natural catastrophe parametric (re)insurance products for hurricane, tropical cyclone, typhoon and earthquake. NormanMax will combine 21st century data and technology to create parametric solutions for clients around the globe to address the natural disaster protection gap, at a time of increased climate risk and volatility.

NormanMax Syndicate 3939 will offer parametric (re)insurance solutions globally, specifically designed for hurricanes, tropical cyclones, typhoons, and earthquakes to address the natural disaster protection gap. NormanMax Syndicate 3939 is pioneering as the first syndicate devoted exclusively to natural disaster parametric (re)insurance solutions, heralding a new era of parametric (re)insurance.

NormanMax is led by CEO Bradley Meier, former Founder, Chairman and CEO of both Universal Insurance Holdings (NYSE:UVE) and Universal Property and Casualty Insurance Company as well as Co-Founder of parametric underwriting specialist New Paradigm Group. NormanMax’s diverse management team has extensive experience of successfully underwriting catastrophe risk in the most difficult climate affected areas in the world.

Stuart Newcombe, former Active Underwriter for Munich Re Innovation Syndicate 1840, will act as Active Underwriter for NormanMax Syndicate 3939. His extensive expertise will be crucial in guiding the Syndicate’s strategy and underwriting, and delivering NormanMax’s 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. NormanMax is proud to announce that its private capital partners have been awarded freehold tenancy, a significant recognition that solidifies their long-term commitment and partnership in our innovative endeavours. Additionally, NormanMax has received strategic support from Helios Underwriting, renowned for its leadership in curating a portfolio of the top-performing syndicates at Lloyd’s. NormanMax is very grateful for all the support of all our freehold tenancy partners.

Guy Carpenter and GC Securities successfully advised on the Lloyd’s application and led the capital raise and reinsurance placement.

Vicky Carter, Global Capital Solutions, International stated: “Guy Carpenter is delighted to have worked closely with the NormanMax team, using our in-depth capabilities in structuring and capital management to create the first parametric syndicate at Lloyd’s. Parametric products provide an innovative alternative risk-transfer solution that deliver transparency and ensure speed of payment. Such solutions can bridge critical insurance gaps, be distributed efficiently and at scale, and address issues around trapped capital. Demand for parametric products is growing and Guy Carpenter is committed to playing a central role in supporting the development of this market.”

NormanMax has partnered with Apollo, who provides Lloyd’s managing agency services, via a long term partnership model, to businesses with shared values of innovation and collaboration.

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.

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 commented: “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 Commented: “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 commented: “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.”

Emily Apple of Alpha Insurance Analysts stated: ”Alpha is delighted to be a cornerstone capital provider to the new parametric NormanMax syndicate 3939. It offers a different and interesting approach to writing primary layers of catastrophe-exposed business around the world. We look forward to growing our position as the business develops.”

Robert Flach, Managing Director, Argenta Private Capital Limited (APCL) commented: “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, confirmed that the consortium is thrilled to provide private capital capacity to NormanMax’s startup, Syndicate 3939. Patel 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.” Patel highlighted the innovative nature of NormanMax’s Syndicate 3939, saying, “We are particularly excited about the parametric opportunity that Syndicate 3939 brings to the Lloyd’s market.” The High Premium Consortium’s involvement underscores their ongoing commitment to supporting groundbreaking initiatives and driving forward the future of private capital capacity in the Lloyd’s market.

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About NormanMax

NormanMax Insurance Holdings, a (re)insurance group based out of Miami, Florida, offers parametric insurance solutions for hurricanes, typhoons, and earthquakes globally via NormanMax Lloyd’s Syndicate 3939. NormanMax is technology-led, data-driven, and customer-focused, providing streamlined claims processes, rapid payouts, and transparent coverage for areas and risks often neglected by traditional insurance markets. NormanMax is committed to bridging the protection gap and delivering peace of mind in the most challenging insurance scenarios in an ever-evolving market. Inquiries can be made at INFO@NORMANMAX.COM.

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About Apollo

Apollo is an innovative integrated insurance Group dedicated to providing high quality products and services to clients, brokers, and capital partners at Lloyd’s.

We offer insurance products across Property, Casualty, Marine, Energy & Transportation, Specialty, Reinsurance and Smart Follow divisions through Syndicate 1969. Through Syndicate 1971 we offer digital & embedded risk programmes.

Our Strategic Partner Syndicates business supports new Lloyd’s entrants from initial concept to full managing agency services.