By Henry Gale

April 8 - (The Insurer) - The UK's Financial Conduct Authority $(FCA)$ has approved NormanMax Insurance Holdings' acquisition of London-based MGA FloodFlash, NormanMax confirmed to The Insurer in a statement.

The Insurer first reported the deal between the parametric insurance specialists in February, which was then subject to FCA approval due to FloodFlash's status as an MGA and Lloyd's coverholder. With this approval granted, the transaction is expected to close imminently.

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 which include 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.

“We are pleased to announce that the Financial Conduct Authority (FCA) has approved NormanMax Insurance Holdings acquisition of FloodFlash," said Bradley Meier, CEO of NormanMax.

He added: "This acquisition will allow us to integrate their innovative technology with NormanMax's distribution platform, enhancing our ability to offer and develop swift and flexible parametric flood insurance solutions not just in the United States and the United Kingdom, but ultimately to clients worldwide."

FloodFlash declined to comment.