Launch of world’s first fully sustainable insurer, Parhelion

In the United Kingdom, Howden, the international insurance broker, announced the launch of Parhelion, the world’s first fully sustainable insurer. Parhelion is targeting a capital raise of $500m and is being advised by Howden Capital Markets and TigerRisk Capital Markets & Advisory.

Against the backdrop of an insurance industry starved of truly sustainable capacity, Parhelion’s new and diversified ESG products will meet the risk financing needs of a greener economy.

The new business has been seeded by Howden and 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.

Parhelion will look at risk through a new lens, to support a unique underwriting approach based on data, technology and proprietary ESG criteria. Empirical studies evidence a persistently strong correlation between corporates with advanced ESG credentials and low insurance claims, enabling Parhelion to offer premium and cover at advantageous terms, whilst generating strong shareholder returns.

Parhelion will provide both traditional risk coverage and create new ESG-specific products for risks of the future, meeting the varying requirements of a wide range of corporates – from those already highly ranked on ESG criteria to those just starting out on their transition journey.