By Henry Gale

March 20 - (The Insurer) - NormanMax Syndicate 3939's gross written premiums were lower than expected at $6 million in 2024 due to its delayed start to the underwriting year, according to its annual report and accounts published on Thursday.

The report also confirms that managing agent Apollo has approved a $15 million cash call after the startup syndicate recorded a loss of $13.8 million, first reported by Parametric Insurer on Monday. The loss brought Syndicate 3939's combined ratio to 289.3%.

The lower than predicted premium growth was primarily attributed to it starting underwriting in May, later than originally planned. As a result, the syndicate's report says it "missed the primary parametric sales period" during Q2.

The only claims Syndicate 3939 faced in 2024 were from Hurricane Milton. It incurred $10 million of losses and $5 million net of reinsurance.

More than 99% of NormanMax's claims for the year have already been paid, which reflects how parametric policies can make payouts quickly after triggers are met, rather than relying on traditional claims assessments.

The syndicate report states that rates remain favourable for parametric covers, and that softening in traditional insurance markets has "released a small amount of budgeted reinsurance spend which we have seen directed towards supporting parametric purchases."

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 syndicate underwrote risks through a binding authority agreement with coverholder NormanMax Insurance Solutions. NormanMax Strategic Parametrics Limited, also part of NormanMax Insurance Holdings, provided 59% of Syndicate 3939's capacity for the 2024 year of account.