NormanMax Insurance Holdings, the US based parametric insurance and reinsurance group launched by former Universal founder and CEO Bradley Meier, has begun offering a parametric retrocession product that is underwritten via its recently launched Lloyd’s syndicate.NormanMax .It became the first specialist and dedicated parametric risk transfer syndicate in the Lloyd’s market.Now, as NormanMax continues to expand its product offering, the company has launched a retrocession offering, expanding what was reinsurance for hurricanes and typhoons to now protect the reinsurers as well.

The company said that, “We’re thrilled to announce that NormanMax Insurance Solutions now offers comprehensive parametric reinsurance solutions for hurricanes and typhoons, including retro covers.” The timing could be positive, as we understand there remains a lack of .There has been shortages of ILW capacity for some quarters now, with this exacerbated of late by the spread widening seen in the catastrophe bond market and its focus on index-trigger cat bonds.We understand some capacity is now available, but that it remains more limited, not helped by significant strategic ILW buys by the likes of Nephila earlier this year.

Parametric retrocession for hurricane risks can provide an alternative solution to buyers that might have sought ILW protection before.At this time of year, with reinsurers consolidating their mid-year catastrophe reinsurance renewals, thoughts often turn to hedging opportunities and parametrics should be a consideration for any major reinsurance company, or indeed an ILS fund manager, with significant concentrations of coastal wind exposure.Parametric hurricane retro can also translate to an effective cover for larger groups of primary insurance entities, that can aggregate their risks and buy a retro solution to take out their peak exposures.

The company said that this parametric retrocession capacity comes via its NormanMax Lloyd’s Syndicate 3939.“Our innovative products are designed to provide rapid, transparent, and reliable financial protection for your insurance or reinsurance organization in the face of natural disasters,” NormanMax explained.Adding that clients can secure themselves against earnings volatility from storm activity with NormanMax’s tailored reinsurance solutions.

As a reminder, NormamMax founder Meier was previously also a co-founder of New Paradigm, the Florida-headquartered parametric MGA that had offered a range of parametric solutions, including for retrocessional purposes..All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance can be accessed online.Our can be subscribed to using the typical podcast services providers, including Apple, Google, Spotify and more.