Howden seeks backing for new sustainable insurer Parhelion

Howden has seed-funded the launch of what it describes as the world’s first fully sustainable insurer, Parhelion, which is targeting a capital raise of $500m. Parhelion will provide traditional risk coverage and create new ESG-specific products for future risks. Howden said the company will look at risk “through a new lens”, to support a “unique underwriting approach” based on data, technology and proprietary ESG criteria. Parhelion aims to meet the requirements of a wide range of corporates, from those already highly ranked on ESG criteria to those just starting out on their transition journey. The broker said empirical studies evidence a persistently strong correlation between corporates with advanced ESG credentials and low insurance claims. This will enable Parhelion to offer premium and cover at advantageous terms, while generating strong shareholder returns, it added. Howden added that the insurance industry is “starved” of truly sustainable capacity and therefore Parhelion’s new and diversified ESG products will meet the risk financing needs of a greener economy. Parhelion aims to begin underwriting from 1 January next year and will be led by co-CEOs Julian Richardson and David V Cabral. They will be joined by Chris Sharp as chief underwriting officer. The business has been seed funded by Howden and is being advised by Howden Capital Markets and TigerRisk Capital Markets & Advisory, as it looks to attract $500m of capital. Howden said it will match the “surge in institutional capital seeking sustainable investment strategies, with the growing demand from corporates looking for an insurance provider to support their journey towards ESG transition and a more resilient future”. Recent data suggests that there were more than $40trn of assets globally invested in ESG-aligned and sustainable impact strategies by the end of last year, nearly double the amount just four years earlier. But Howden noted that very little has so far been deployed across the (re)insurance industry. Charlie Langdale, head of sustainable insurance at the broker, said: “We’re delighted to offer a unique solution for our clients, who are in need of a new and sustainable approach to the risks of the future. Parhelion will be an unencumbered, highly rated, ESG-focused carrier backed by fresh capital that our clients can partner with and trust. Its launch is a step towards facilitating long-term industry change.” Mr Richardson and Mr Cabral said companies are transitioning to sustainable procurement and this should include financial services and products. “Our vision is to support customers’ transition to a more sustainable and resilient future, while creating a virtuous cycle of improved risk control and underwriting performance, irrespective of the market cycle. This vision will be supported by an ecosystem of services and shared data insights to support the overall customer ESG transition,” they added.

Howden seeks backing for new sustainable insurer Parhelion

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