NormanMax closes acquisition of FloodFlash

By Henry Gale

May 13 - (The Insurer) - Parametric underwriter NormanMax Insurance Holdings has closed its acquisition of London-based MGA FloodFlash, according to the latter's Companies House filings.

The Insurer first reported the deal between the parametric insurance specialists in February. The transaction was subject to sign-off by the UK's Financial Conduct Authority due to FloodFlash's status as an MGA and Lloyd's coverholder, with approval granted by April 10.

Companies House filings made on Tuesday and dated May 7 confirm that all shares in FloodFlash are now held by NormanMax Insurance Holdings.

Launched in 2017 by co-founders Adam Rimmer and Ian Bartholomew, FloodFlash provides parametric flood insurance that pays out when the depth of a flood at a client’s location exceeds a pre-defined threshold, as measured by its on-site sensors. According to S&P Capital IQ, the company had raised more than $20 million of funding from investors, including the venture capital arms of Munich Re and MS&AD.

Through its Florida-based MGA and Syndicate 3939 at Lloyd's, NormanMax underwrites parametric coverage for tropical cyclones and earthquakes, and said last year that it planned to expand its product offering to flood risks.

When the companies confirmed the deal in February, they said FloodFlash would continue to operate as an MGA and Lloyd's coverholder following the acquisition, with its product still available to distributors and customers in the UK, U.S. and beyond.

"In the coming weeks, we'll be sharing updates about enhancements to the (FloodFlash) product, including its integration with our hurricane parametric solution as an additional trigger in certain structures," NormanMax's chief revenue officer Mark Groenheide told Parametric Insurer.

"The addition of FloodFlash, combined with our newly approved syndicate business forecast, further strengthens NormanMax's ability to offer a broader range of solutions across an expanded set of perils."