SiriusPoint Ltd has sold its stake in Parameter Climate, the New York-based climate risk advisory, distribution and analytics firm.

The Bermudian-headquartered global specialty (re)insurer was a seed investor when Parameter launched two years ago.

Announcing the management buyout, Parameter Climate said SiriusPoint will continue to support the company with underwriting capacity.

Parameter said it is building on its initial successes by adding advisory and brokerage services for both vertical-based protection buyers and capacity providers, in addition to offering licensing of ClimateDelta, its state-of-the-art climate risk transfer analytics platform.

“We thank SiriusPoint for its significant contributions to our launch two years ago and look forward to continuing to provide underwriting advisory to SiriusPoint and others,” said Martin Malinow, founder and CEO of Parameter Climate.

Scott Egan, CEO, SiriusPoint, said: “SiriusPoint is pleased to have contributed to the creation of Parameter Climate, which addresses an important protection gap in the climate and weather risk management market.

“While this transaction is consistent with our strategy to reduce our equity investments in programmes and MGAs, we look forward to continuing to support Parameter Climate with underwriting capacity based on its strong underwriting results to date.”