Paraline UK and Beat Capital sign merger deal

Venture capital firm Beat Capital Partners and insurance investment vehicle Paraline UK are to merge in a move designed to "enhance and further build Beat’s platform to support independent underwriting businesses".

As a result of the merger, Paraline Group, a Bermuda-based re/insurance holding company, will join Neon Holdings as a strategic investment partner of Beat. Furthermore, the £110 million Paraline Syndicate 4242 at Lloyd’s, which is managed by third-party managing agency Asta, will be renamed Beat Syndicate 4242. The merger is subject to regulatory approval.

Bruce Schnitzer and John Struck of Paraline will join the Beat board of directors, which will be chaired by John Cavanagh, the former CEO of Willis Re.

Paul Rayner, active underwriter of Syndicate 4242 and a director of Paraline Group, will become chief financial officer of Beat.

Currently, Beat has two investments, Tarian, a cyber insurance specialist and Chord Re, a specialty reinsurance underwriter. Neon Syndicate 2468 leads underwriting support for both facilities.

The company said managing general agent (MGA) ICAT Managers will continue its strategic underwriting relationship with Syndicate 4242.

Tom Milligan, co-founder of Beat, said: “Beat has grown rapidly since its formation in 2017. This deal gives us access to a second Lloyd’s platform alongside Neon 2468 that benefits our existing investee companies and enhances our offering to proven lead underwriters who have the ambition to build their own business. We are delighted to partner with Paraline, who have a track record of successful insurance investment.”

Bruce Schnitzer, chairman of Paraline Group, commented: “This transaction is a great move for our business. It brings together a talented group of established insurance leaders and a powerful shareholder group with a shared, long-term vision.”

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