Howden launches Capital Markets capability to create choice for clients

Howden Capital Markets will focus on innovative product development for (re)insurance sector

HX, the data and analytics division of Howden Group Holdings, announced today the launch of Howden Capital Markets (“HCM”), the Group’s capital markets advisory practice. HCM is a new capital markets adviser with a clear ambition to develop innovative products to service clients, markets and investors.

The increasing confluence of insurance and capital markets has created the opportunity to provide advisory, structuring, and arrangement services as part of Howden’s client offering. HCM’s services are planned to include advisory services in respect of mergers and acquisitions, capital raising, restructuring, risk securitisation, yield enhancement solutions and more for (re)insurance and risk management clients.

David Flandro, Head of HX Analytics commented: “There is an emerging demand in insurance for a nimbler, alternative adviser who is internationally-focussed, with insights underpinned by technology and analytics. With HX’s data-driven IP, HCM will deliver the most impactful solutions available including a full range of risk and capital advisory services for investors and clients. HCM’s purpose is to identify new opportunities and enhance firm value for all stakeholders.”

Howden Group sees opportunities to create long-term, sustainable value in the burgeoning environmental, social, and governance (ESG) arena. HCM provides another means to play a bigger role in developing solutions to tomorrow’s risks.

Mark Shumway, Executive Director and Head of Advisory, HX, said: “Product innovation is key in delivering solutions not only for our clients but also for the wider world, as we look to build a more sustainable future. A capital markets advisory capability enables us to do more in this space, such as developing risk management solutions for humanitarian aid and sustainable energy projects.”

HCM will provide Howden clients with further access to investment capital which, alongside traditional insurance capacity, can result in lower risk transfer costs and superior outcomes. The launch of HCM offers clients greater choice and flexibility at a time they need it most.

Elliot Richardson, Chairman, Howden Reinsurance Brokers, commented: “The market is currently the most dislocated it has been in a generation, with rate hardening gathering pace against the backdrop of a global pandemic and industry consolidation. We see this as a real opportunity to create solutions for investors, be they insurers, MGAs or insureds, through HCM using our data-led approach via HX.”