Ariel Re’s clean energy division relaunched as Ariel Green

Global (re)insurer Ariel Re has relaunched its clean energy division as Ariel Green. The reinsurer said the move “recognised the increasingly crucial role of technology performance insurance in accelerating innovation in solar, energy storage, hydrogen, and bioenergy to help curb climate change”.

Ariel Re said it has insured $30bn worth of assets on six continents, covering more than 30 clean energy technologies, including 100+ GW of solar warranties.

Technology performance insurance policies protect against production shortfalls caused by technology failures, enabling manufacturers to issue long-term warranties and clean energy projects to secure funding, successfully start up, get built, and operate profitably, said Ariel Re. It added that this allows lower-cost capital providers to manage aggregation risk in commercialised technologies and participate in innovative projects without applying a risk premium.

“Especially in today’s high-interest market, we believe that performance insurance offers technology manufacturers and developers a powerful differentiator that can help them reassure investors, obtain financing on better terms, and increase speed to market,” said Jan Napiorkowski, Ariel Green’s managing director. “As the world strives to reach net zero, we’re responding to the increasing need to finance the trillions required to make the transition to clean energy. And as more clean energy projects come online, legacy fossil fuel facilities can be shuttered and their emissions abated.”

He explained that Ariel Green’s value to the industry is built on the technical and financial expertise that its team of specialised underwriters brings to projects, and the way they collaborate with clients to develop customised solutions. “We’re well equipped to deploy insurance capital and support the industry’s largest projects with meaningful risk transfer,” he said.

He added: “Despite our success to date, we feel we are only scratching the surface as many tech companies, project developers and investors remain unaware of Technology Performance Insurance, and how it can help them backstop warranties, secure financing for projects or enable mergers and acquisitions.”

Ariel Re has offered clean energy technology performance insurance since 2016, but said it has experienced strong growth over the past seven years. It has expanded with interest and investment in a wide range of renewables and clean energy projects, including solar, energy storage, biofuels, waste-to-energy, hydrogen, and fuel cells, among other technologies.

Ryan Mather, CEO of Ariel Re, said: “We offer to our capital providers a variety of uncorrelated, highly tailored risk classes, and Ariel Green brings a very strong value proposition, both in terms of technical underwriting expertise and in improving their ESG footprint – our capital really likes that.”

He added: “Offering debt tenor matching, non-cancellable Lloyd’s policies shows that Ariel is a thoughtful, consistent, and predictable long-term partner for our brokers and clients. And Ariel Green’s process applies this to the insurance side of our business too. Our new brand will enable us to communicate more effectively to the wider clean energy markets.”