Specialty Lloyd’s of London managing general agent (MGA), Sciemus, has announced a new investment partnership with HSCM Bermuda, the ILS, reinsurance and transportation finance investment firm established by ex-Goldman Sachs structured finance head Michael Millette, and also secured a financial investment from HSCM Bermuda’s clients.
Sciemus specialises in analysing and accessing niche risks, including cyber risk, while HSCM Bermuda is an insurance and reinsurance-linked investment manager with institutional and third-party capital backing.
Subject to regulatory approval from the Financial Conduct Authority (FCA), and under the new partnership, Sciemus is set to change its name to Argon Underwriting, which is meant to reflect the change from a consulting firm to an underwriting company.
Furthermore, the new partnership will see HSCM Bermuda’s Chief Operating Officer (COO), Tim Tetlow, join the Sciemus Board.
The invested capital is to be used by Sciemus to develop its Lloyd’s of London platform, and also assist with the expansion of its data and modelling into other specialty and emerging exposures, says the firm.
Commenting on the new partnership, Rick Welsh, Sciemus Chief Executive officer (CEO), said; “I am thrilled to welcome HSCM Bermuda as a partner. Michael and Tim have outstanding reputations in the global re/insurance market and their industry knowledge and expertise will be invaluable as we develop Argon into a globally recognised insurer of specialty risk.
“The increasing convergence between traditional insurance, reinsurance and the capital markets is creating an opportunity in core economic sectors that represents both traditional and emerging risk that is lightly-correlated to property cat. Our approach to modelling and data science enables us to be more creative and dynamic in our risk transfer and distribution, particularly in industries such as space, power, renewable energy, cyber and natural resources. HSCM Bermuda shares this vision and we are excited about exploring these opportunities with them – particularly, in the burgeoning insurance-linked securities market.”
Tetlow, added; “HSCM Bermuda is proud to partner with Rick and his team as we share their vision that superior data analytics can be harnessed to produce superior returns, and that the convergence of capital markets and insurance will only continue.”