By James Thaler

Feb 24 - (The Insurer) - NormanMax is to acquire London-based parametric insurtech MGA FloodFlash in a deal that remains subject to Financial Conduct Authority approval, sources close to the transaction told The Insurer.

Sources said the deal was signed on Friday, though details of the agreed valuation could not immediately be confirmed.

Launched in 2017 by 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 predefined threshold, as measured by one of its on-site sensors.

Backed by capacity from Munich Re and Hiscox, FloodFlash launched its parametric flood insurance product in the UK in 2019, and then expanded into the U.S. market in 2023. It is also a registered coverholder at Lloyd’s and is authorised and regulated by the FCA.

FloodFlash raised $15 million in Series A funding in February 2022 led by Chicago-based Buoyant Ventures, with additional backing from Munich Re Ventures and Global Brain, on behalf of Sony Financial Ventures.

Other FloodFlash equity backers include MS&AD Ventures, PropTech1, Pentech, Local Globe and Insurtech Gateway.

Several FloodFlash executives have recently taken up senior posts elsewhere, including Mark Hara, who in October 2024 was named CEO of small business-focused insurtech Layr, with senior structuring manager Henry Bellwood joining Lockton. Last month FloodFlash commercial director Richard Coyle joined parametric rival Arbol.

The deal is the second notable acquisition for NormanMax since it was launched in 2023 by Brad Meier, the founder and former CEO of Florida-based insurer Universal Insurance Holdings.

NormanMax acquired parametric-focused MGA New Paradigm, another venture Meier co-founded, in June 2024.

The Insurer first reported in September 2023 that NormanMax had received approval from Lloyd’s to launch Syndicate 3939, managed by Apollo. Syndicate 3939 is the first Lloyd’s syndicate dedicated to underwriting natural catastrophes on a parametric basis.

Meier has told The Insurer that the company also retains ambitions to launch a U.S.-based E&S carrier focused on offering coverage to homeowners and SMEs.

Its roster of executives include Mark Groenheide as chief revenue officer, former Munich Re Syndicate executive Stewart Newcombe as active underwriter for Syndicate 3939, and former Topsail Re executive Daniel Turgel as chief underwriting officer.

NormanMax and FloodFlash both declined to comment.