Exclusive: NormanMax 3939 investors face $15 million cash call after 2024 loss

By Henry Gale

March 17 - (The Insurer) - Investors in NormanMax Syndicate 3939 are facing a $15 million cash call after the parametric-focused underwriter recorded a loss in 2024, according to a source close to the syndicate.

The cash call has been issued to participants in the syndicate's 2024 year of account, after it ended last year with a loss of $13.7 million against gross premiums of $22 million.

Net claims of $5 million from Hurricane Milton contributed to the loss, as did the syndicate's late start to the year: while NormanMax incurred the fixed costs associated with running a syndicate in 2024, it began underwriting in May.

NormanMax Insurance Holdings, founded by former Universal Insurance Holdings CEO Brad Meier, received approval from Lloyd's to launch Syndicate 3939 in September 2023. Syndicate 3939 became the first Lloyd's syndicate dedicated to underwriting natural catastrophe risks on a parametric basis, initially focusing on tropical cyclones and earthquakes with plans to expand to more perils.

The Insurer first reported last month that NormanMax had agreed to acquire parametric MGA FloodFlash pending Financial Conduct Authority approval. Syndicate 3939 has also made recent partnerships with Rokstone and Lockton, the latter involving a new parametric product for docked yachts.

NormanMax and Lloyd's declined to comment.