Energy & Freight Price Risk Insurance
Paratus is an insurance group focused on decarbonisation by accelerating the transition to renewable energy and sustainable fuels.
Since its founding in 2020, Paratus commercialised the world’s first energy and freight insurance policies, protecting producers and consumers of transition fuels and freight from energy price risks. We are further expanding our available policies to cover renewable power, pending regulatory consent.
The Paratus Group is a portfolio company of Ara Partners, a global private equity firm that is decarbonizing the industrial economy. Ara Partners invests in the industrial and manufacturing, chemicals and materials, energy efficiency and green fuels, and food and agriculture sectors, seeking to create companies with significant decarbonisation impact.
We partner with corporate clients to mitigate price volatility, P&L and balance sheet risk, to protect revenue and stabilise cashflow to better enable the allocation of capital into further renewable power projects and sustainability in the transition fuels industry.
Our effective and transparently-priced insurance policies are designed to settle by paying a predefined claim amount. The cash settlement is paid automatically.
The policy removes the need to deal with costly, complex, time-consuming and often opaque traditional hedging products.
Why Price Risk Insurance?
AFFORDABLE
Paratus policies are inexpensive. They represent a minor proportion of the total physical cost of purchasing energy or freight, across all industries.
TAX DEDUCTIBLE
Depending on the applicable tax jurisdiction, the cost of a Paratus policy will often be tax-deductible as an operating cost.
TRUSTWORTHY
Paratus insurance products are regulated by the Guernsey Financial Services Commission (GFSC). In addition, Paratus Maritime Insurance Ltd. and Paratus Aviation Insurance Ltd. transfer risk to particular Underwriters at Lloyd’s (rated “AA-” (Very Strong) by Standard & Poor’s and “AA-“ (Very Strong) by Fitch Ratings), which enhances the financial security we offer our clients worldwide.
EFFICIENT
Claims are paid quickly and automatically - on the provision by the policyholder of documentary evidence which is approved by the underwriter before the claim payment is made.
TRANSPARENT
Risk is clearly defined and costs fixed at the start of the policy. There are no hidden charges. That means there’s no volatility on your balance sheet.
ACCESSIBLE
Paratus policies can be used by any business, regardless of its credit rating and without complicated valuation or accounting methods. No specialist knowledge is required. We ensure that, from a legal and operational standpoint, the onboarding is not onerous.
AUTONOMOUS
You have complete control over your protection strategy. There is no need for, and no dependence on, particular relationships with investment banks.
SECURE
In the event of extreme energy or freight price volatility, unlike traditional price risk products, there are no margin calls, no liquidity stress or hidden costs.
PROTECTION AGAINST UNCERTAINTY
Recent global events such as the war in Ukraine and the worldwide disruption caused by Covid-19 have brought traditional risk management products such as financial derivatives under renewed focus. The risk and market disruption caused by Covid-19 now means that industrial consumers of energy need Energy Price Insurance that protects their balance sheet in a way that is transparent, easy to understand, cost-effective and trustworthy.
Industrial consumers of energy need Energy Price Insurance.