Paratus Holdings Limited (“Paratus”), the world’s first (re)insurance group underwriting energy price risk, today announces that Paratus Renewables Insurance Limited has been granted regulatory approval by the Guernsey Financial Services Authority (“GFSC”) to provide insurance cover to the renewable power industry.
Paratus provides innovative and commercially viable insurance solutions to accelerate the transition to renewable energy and sustainable fuels. The license approval will expand the product offering beyond aviation, maritime, and freight to renewable power including wind, solar, biofuels, and hydrogen.
Paratus renewable power insurance protects generators from adverse energy price risk, improving the competitiveness of renewable assets when compared to traditional price risk mitigation solutions. Equally, their policies enable power consumers to better manage operating costs and protect balance-sheets in a highly opaque marketplace. Through a deep understanding of the renewables energy sector, Paratus partners with clients to navigate a complex energy market.
The regulatory approval by the GFSC marks another significant milestone for the business. In January 2024, Paratus announced the completion of a growth equity investment from Ara Partners (“Ara”), a global private equity and infrastructure firm focused on industrial decarbonisation. The Ara investment has provided the capital required for Paratus to significantly scale and enhance the product offering.
Gus Majed, Group CEO and Founder, Paratus, commented: “The renewable power licence is central to our future growth. We are writing the world’s first policy for renewable power price protection and our product will have a transformative impact on the renewable energy industry. It will help catalyse the growth and competitiveness of renewable power assets, as Paratus expands across the U.K., Europe and the U.S.
Our focus is on providing clear, simple and transparent solutions that transform how firms mitigate adverse energy price volatility. This is a crucial step forward for the business and for the industry, as our world first renewable power price insurance policy will accelerate the transition to renewable energy sources and sustainable fuels.”
As the insurance manager, Strategic Risk Solutions is exceptionally proud to be partnering with Paratus in their establishment of Paratus Renewables Insurance Limited. “We couldn’t be happier to support Paratus in the efforts to provide the right type of coverage to the renewable power industry,” said Adele Gale, Deputy Managing Director – SRS Europe. “SRS, for more than 20 years around the world has worked to support how businesses mitigate risk. This insurer will disrupt and accelerate the renewable power generation capabilities globally. And we’re thrilled to be a part of this effort.”
Paratus has further enhanced its offering by partnering with px Group, a fully licenced Ofgem supply business that provides power balancing capabilities. This partnership enables Paratus & Partners, the Group’s insurance brokerage division, to leverage px Group’s capability to provide Paratus and clients with compelling economics for physical offtake and 24/7 monitoring services, when they take out an insurance policy.
Gus added: “px Group has long standing experience and a first-class reputation for working with customers in the renewable energy space, and we are confident that this strategic partnership will help to support renewable power producers even more effectively, as they drive the transition to net zero. With px Group, we can deliver an end-to-end complete solution for renewable power generators.”
About Paratus
Paratus is the world’s first (re)insurer underwriting energy price risk with innovative solutions to protect against adverse energy price volatility and accelerate the transition to net-zero. A unique partnership of world-class experts in energy, insurance, and technology, Paratus is backed by Ara Partners, a $6.2 billion global private equity and infrastructure firm focused on industrial decarbonisation, and underwritten by globally rated financial institutions.
About px Group
px Group is a fully integrated infrastructure solutions business delivering innovative management services for high hazard and highly regulated environments. px Group manages, operates and maintains some of the largest industrial facilities in the UK and in Norway, and owns the world-renowned Saltend Chemicals Park at the heart of the UK's Energy Estuary. With over 25 years' experience, and operations in the UK, Norway, Germany and the Americas, px Group delivers end-to-end specialist services in operations & maintenance, engineering services and energy solutions across the industrial and energy infrastructure sectors.
About Strategic Risk Solutions (SRS)
SRS is the world’s largest independent insurance company manager. With over 25 years of experience, SRS provides management and consulting services to a wide range of insurance company entities, from single parent captives to complex commercial insurers and reinsurers. SRS has operations in the United States, Canada, Europe, Barbados, Bermuda, Cayman Islands, Latin America, and South Africa. For more information on SRS, please visit www.strategicrisks.com.
Media contacts
Kapil Arya / Ed Shelley, Lansons
paratus@lansons.com
07550044000
Sandra St. Onge, SRS
sandra.st.onge@strategicrisks.com
+1 781-666-5011
