HSCM Bermuda, a two-year-old firm that invests in insurance-linked assets, has formed an investing partnership with a Lloyd’s managing agency Sciemus.
As part of the new partnership, Sciemus will be renamed Argon Underwriting, subject to regulatory approval from the UK’s Financial Conduct Authority. Sciemus, is a specialty Lloyd’s MGA in the space, power, renewable energy, cyber and mining industries.
HSCM Bermuda was founded by Michael Millette, a former partner in Goldman Sachs, who was a founding member of Goldman’s reinsurance structured finance group.
The company has offices in Stamford, Connecticut and Bermuda, and invests in reinsurance and insurance-linked assets across the life, health, property and casualty sectors.
As part of the investment, Tim Tetlow, HSCM Bermuda’s chief operating officer, is expected to join the board of Sciemus.
Rick Welsh, Sciemus’s chief executive officer, said the aim was to 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,” Mr Welsh said.
“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.”
Mr Tetlow said: “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.”