By Henry Gale

April 30 - (The Insurer) - Strategic Risk Solutions' alternative risk transfer MGU Altitude is offering line sizes of up to $50 million for parametric tropical cyclone and earthquake risks with capacity from Beazley in a deal brokered by Augment Risk, parametric market sources told Parametric Insurer.

While the number of (re)insurers that underwrite parametric natural catastrophe risks has grown in recent years, only a handful write line sizes as large as $50 million. Beazley's partnership with SRS Altitude is its first publicly reported foray into parametric nat cat cover for corporations and captives.

Beazley's Dublin-based insurer is SRS Altitude's exclusive capacity provider for parametric risks. Beazley has previously announced its backing for other parametric propositions including non-catastrophic weather insurance with Arbol and retail tornado coverage with Sola.

Captive manager Strategic Risk Solutions announced the launch of Altitude in November 2023 with Loredana Mazzoleni Neglén, who previously led Swiss Re Corporate Solutions' innovative risk solutions team, as global CEO. Its team predominantly consists of former Swiss Re Corporate Solutions executives specialised in alternative risk transfer, including parametrics.

The partnership also represents another major parametric deal for reinsurance broker Augment Risk. Augment entered the parametric market in October 2023 when it hired Aon's former global head of weather Kurt Cripps and has since secured clients such as telecommunications firm Liberty Latin America, one of the largest purchasers of parametric hurricane insurance.

Beazley and Augment Risk declined to comment. Strategic Risk Solutions did not immediately respond to a request for comment.