Venture capital company focused insurance industry Beat Capital Partners and Paraline UK are planning for merger.
Beat Capital Partners and Paraline UK expect that this move will enhance and will further build Beat’s platform to support independent underwriting businesses.
With this merger, Bermuda-based Paraline Group will join Neon Holdings as a strategic investment partner of Beat. The merger is subject to regulatory approval.
After the merger is completed Paraline Syndicate 4242 at Lloyd’s, will be renamed Beat Syndicate 4242. Syndicate 4242 at Lloyd’s has a £110m capacity and is managed by Asta, a third party managing agency.
As a venture capital company, Beat Capital offers insurance start-ups with infrastructure, risk capital, ‘A+’ rated papers along with experienced guidance and support.
Presently, Beat has two investments, Tarian, a cyber insurance company and Chord Re, a specialty reinsurance underwriter. Neon Syndicate 2468 provides underwriting support for both facilities.
Beat Capital co-founder Tom Milligan said: “Beat has grown rapidly since its formation in 2017. This deal gives us access to a second Lloyd’s platform alongside Neon 2468 that benefits our existing investee companies and enhances our offering to proven lead underwriters who have the ambition to build their own business. We are delighted to partner with Paraline, who have a track record of successful insurance investment.”
As per Paraline, ICAT Managers, a managing general agent underwriting property catastrophe insurance to businesses and homeowners across the US, will continue its longstanding strategic underwriting relationship with Syndicate 4242.
ICAT was formerly owned by Paraline before it was sold to Victor, last year. Victor was formerly known as The Schinnerer Group, as per Insurance Journal.
Paraline’s Bruce Schnitzer and John Struck will join the Beat board of directors, which will be chaired by John Cavanagh. Syndicate 4242 active underwriter and Paraline Group director Paul Rayner, will also become Beat’s chief financial officer.
Paraline Group chairman Bruce Schnitzer said: “This transaction is a great move for our business. It brings together a talented group of established insurance leaders and a powerful shareholder group with a shared, long-term vision.”
Neon group CEO Martin Reith said: “As a founder investor in Beat, we are thrilled to be partnering with Paraline Group in the next stage of Beat’s evolution.”