The start-up will cater for demand from corporates looking for an insurance provider to support them towards ESG transition on the underwriting side, and investors seeking sustainable investment strategies.
It will be led by climate risk specialists Julian Richardson, who advises the UK’s Department for International Trade on green insurance, and David Cabral, previously COO of Peak Re.
The pair will serve as co-CEOs. They will be joined by Chris Sharp, former underwriting director at Dale Underwriting Partners and head of specialty reinsurance at Ark, who takes up the role of CUO in September this year.
Richardson and Cabral said: “Companies are transitioning to sustainable procurement and this should not be limited to physical goods; it must also include financial services and products.”
Parhelion will provide both traditional risk coverage and create ESG-specific products which Howden said would help to cater for the risks of the future.
It will specialise in risks impacting clean energy and climate finance markets.
The new firm is being advised on its fundraise by Howden Capital Markets and TigerRisk Capital Markets and Advisory.
Charlie Langdale, head of sustainable insurance at Howden, said the Parhelion launch was a step towards facilitating long-term industry change.
“Parhelion will be an unencumbered highly rated ESG-focused carrier backed by fresh capital that our clients can partner with and trust.”
The international insurer suggested that the venture would be able to offer premium and cover at “advantageous terms” while still delivering returns, because of a strong correlation between companies with ESG credentials and low insurance claims.
