Marine insurer NorthStandard has set up a £23.5m partnership with a Norwegian counterpart to expand its business in the offshore renewables market.
Newcastle-based NorthStandard, which employs about 300 of its 600-strong workforce on Tyneside, has formed a partnership with Niord, the offshore energy specialist subsidiary of the Norwegian Hull Club - another historic, mutual marine insurer. The move will give NorthStandard additional capacity to insure fixed and floating wind farms and renewables equipment, and make room for expected growth of other liability products in the sector.
From next month, NorthStandard will provide £23.5m ($30m) in additional capacity along with others in the sector such as Alandia, SiriusPoint, NHC Security, Cincinnarti and new partners Beazley and Benhaim. It follows suggestions from managing director Paul Jennings, around the time of the $750m merger that created NorthStandard, that the offshore renewables market could provide growth for what has become one of the world's largest maritime insurers.
NorthStandard has pointed to anticipated growth in the sector on the back of º£½ÇÊÓƵ ambitions to substantial ramp up offshore wind power by 2030. It says to meet the target of deploying 50GW of offshore wind capacity by 2030, contractors are under pressure to retain liabilities within deductibles and seek risks cover.
Paul Jennings, managing director of NorthStandard, added: "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."
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 the 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."
Last month NorthStandard announced it would adopt a "precautionary" 5% increase in its 2025-26 premiums on the back of higher claims volumes this year and more exposure to higher claims. NorthStandard chair Cesare d’Amico said major international conflicts, changes to navigation routes and other geopolitical challenges had created an "abnormal" claims environment in which there had been 14 large claims made of more than $1m in the first half of 2024.
