NorthStandard and NIORD have announced a new strategic partnership to build their offshore renewable energy underwriting business
Posted on: 16 December 2024
Under an agreement that comes into effect on 1 January 2025, global marine insurer NorthStandard will provide US$30M in additional capacity to insure fixed and floating wind farms as well as renewables devices. The facility is part of a risk management partnership between renewables-focused NIORD and NorthStandard that also anticipates the development of other sector-specific liability products.
NIORD already has an established capacity of US$115M in the sector, initially built from 100% NHC security from 1 January 2024 and subsequently expanded to include Alandia, SiriusPoint, and Cincinnati. Available capacity will increase to US$160M from 1st January 2025, including US$30M from NorthStandard and a further US$15M from Beazley and Blenheim.
“This strategic partnership with NIORD builds on our commitment to support and facilitate the growth of offshore wind energy and other renewable sources. NorthStandard has a long history of providing cover for members involved in the construction, installation, maintenance, and operation of offshore wind farms”, said Jeremy Grose, Managing Director, NorthStandard.
NIORD’s prudent approach balances volatile CAR (Construction All Risk) insurance and more benign operational risks in the offshore wind sector, which factors in the lag before assets come online. Between 2018 and 2024, NIORD premiums within the sector increased dramatically and further accelerated growth is forecast for 2025.
“The partnership is an exciting opportunity to broaden the support offered to this sector whilst benefiting from the deep knowledge, experience and technical expertise of one of the acknowledged leaders in this area. NorthStandard and NIORD both share a prudent approach to underwriting, delivering a first-class claims service combined with an unwavering commitment to responding to the evolving needs of our members”, added Paul Jennings, Managing Director, NorthStandard.
Georg Nygaard, CEO of NIORD, said: “NIORD’s aim is to establish market leadership in the offshore wind farm sector and grow its position as a specialist underwriter for other offshore renewable devices. Our strong underwriting position reflects our cautious approach to risk selection and expansion. Our partnership with NorthStandard will grow capacity progressively and differentiate NIORD on ancillary liability risk expertise.
Hans Christian Seim, CEO of Norwegian Hull Club and Chair of NIORD’s Board of Directors, said: “It is a pleasure and a source of pride to see how the NIORD story continues to develop. This latest strategic partnership with NorthStandard adds important financial strength, as well as experience within the P&I segment, to NIORD”.
