Beazley, a specialty insurer, has reached agreement to acquire kWh Analytics, a US a climate insurance provider.

Beazley argues that the global energy transition is a “significant strategic growth opportunity,” and is focused on underwriting the complex risks that will enable the transition. kWh Analytics will update Beazley’s capabilities in modelling, underwriting and risk management across renewable energy portfolios.

kWh Analytics will be embedded into Beazley’s MAP (Marine, Accident & Political) Risks team. Jason Kaminsky, CEO, will report directly to Tim Turner, Group Head of MAP Risks and be a key part of the transition underwriting strategy which is led by Kelly Malynn.

“The energy transition represents one of the most significant opportunities for the specialty insurance market,” Adrian Cox, CEO of Beazley, said. “At Beazley, we see transition underwriting as a dynamic, long‑term driver of structural growth, with investment in the energy transition projected to reach multiple trillions in the next decade. kWh Analytics’ reputation as an innovative player in the renewable energy space is well established, and this acquisition reflects our continued investment in the capabilities needed to support our transition clients with solutions to complex risk. I’m excited to work with the fantastic team at kWh Analytics.”

“Joining Beazley represents an exciting new chapter for kWh Analytics,” Jason Kaminsky, CEO of kWh Analytics, said. “Together, we will accelerate the development of risk products and services that support the energy transition. Beazley’s global reach and commitment to innovation make them the right partner to scale our mission.”

Evercore Partners International LLP acted as sole financial adviser and Freshfields Bruckhaus Deringer LLP served as legal adviser to Beazley. McDermott Will & Schulte LLP acted as legal adviser to kWh Analytics.

Last fall, kWh Analytics announced the expansion of its insurance solutions with new Excess Natural Catastrophe coverage through its licensed insurance entity, Solar Energy Insurance Services, specifically addressing the growing need for severe storm protection in the renewable energy market.

A cornerstone of kWh Analytics’ approach, the company says, is rewarding resilience through its underwriting process. Projects that implement protective measures such as hail stow capabilities, reinforced module characteristics including glass thickness, and proper O&M protocols will benefit in the excess layer, just as they do in primary coverage.

Last January, the company announced it had been awarded $500,000 from InnSure’s Insurance Innovation Prize, supported by the New York State Energy Research and Development Authority (NYSERDA), to support the development of a tax credit insurance product explicitly tailored for small-scale distributed generation renewable energy projects, addressing what the company called a “critical market gap” in renewable energy financing. The product aims to enable projects under 20 MW to effectively monetize transferable tax credits introduced by the Inflation Reduction Act (IRA). While the IRA made tax credits transferable, in part to promote distributed generation, traditional tax credit insurance solutions require “extensive and expensive due diligence from highly specialized and skilled professionals that smaller projects cannot support,” per kWh Analytics. The company argues this creates a barrier for smaller renewable energy projects seeking to participate in the tax credit market.

In July 2024, kWh Analytics touted a “first-of-its-kind” wind proxy hedge risk transfer product for a 59 MW, 14-turbine offshore wind project in Maine, developed by a Greenbacker Capital Management-affiliated investment vehicle that invests in sustainable infrastructure assets. The financial structure included the use of a wind proxy hedge, provided by global reinsurer MunichRe, advised by kWh Analytics, and utilizing the kWh Analytics Indifference Structure for debt sizing. The implementation marked the first time a parametric wind hedge has been paired with the kWh Analytics Indifference Structure to reduce equity requirements for a project sponsor. The structure’s implementation enabled the project sponsor to raise roughly 20% more debt capital for the project, led by MUFG.