Sciemus, a Specialty Lloyd’s MGA, is forming an investing partnership with HSCM Bermuda, a firm that invests in reinsurance and insurance-linked assets across all lines of business. The deal also calls for Sciemus to change its name as it evolves from consulting to underwriting.
The space, power, renewable energy, cyber and mining industries will be a focus of the partnership, which also includes a financial investment from HSCM Bermuda’s clients. With the agreement, Sciemus will be renamed Argon Underwriting, pending UK regulatory approval, according to the deal announcement.
Plans call for the London-based Sciemus to use the investment to develop its Lloyd’s underwriting platform and to further expand its data and modeling expertise into other areas of specialty and emerging risk.
Sciemus is changing its name to Argon Underwriting in order to reflect its strategic transformation from a consulting company to an underwriting company that wants to use its data and analytics expertise for more complex and emerging risks, both parties said.
With the investment, HSCM Bermuda Chief Operating Officer Tim Tetlow will join the Sciemus board of directors.
Sciemus CEO Rick Welsh said that the convergence between traditional insurance, reinsurance and the capital markets creates an opportunity in basic economic sectors involving both traditional and emerging risks that dovetail with property-cat. He said that his company is well suited to meet the new challenges.
“Our approach to modelling and data science enables us to be more creative in our risk transfer and distribution, particularly in industries such as space, power, renewable energy, cyber and natural resources,” Welsh said in prepared remarks. “HSCM Bermuda shares this vision, and we are excited about exploring these opportunities with them—particularly in the burgeoning insurance-linked securities market.”
Tetlow said in prepared remarks that both sides share the vision “that superior data analytics can be harnessed to produce superior returns and that the convergence of capital markets and insurance will only continue.”
HSCM Bermuda, launched in 2015 by former Goldman Sachs partner Michael Millette, invests in reinsurance and insurance-linked assets in the life, health, property and casualty sectors. Sciemus, launched in 2002, builds risk analysis models for assets that reflect complexity and technology. It is a specialty insurer of noncommoditized and emerging risk in cyber, space, renewable energy, power and mining, using proprietary data, deep industry domain expertise and rigorous modeling capabilities.
Source: Sciemus/HSCM Bermuda