Paraline UK and Beat Capital Partners announce merger

The £110 million Paraline Syndicate 4242 at Lloyd’s, which is managed by third-party managing agency Asta, will soon be known as Beat Syndicate 4242.

This is just one of the changes that is about to unfold, as venture capital company Beat Capital Partners merges with insurance investment vehicle Paraline UK. Subject to regulatory approval, the merger will see the Beat platform enhanced to support independent underwriting businesses.

Meanwhile Bermuda-based insurance holding company Paraline Group will join Neon Holdings Ltd as Beat’s strategic investment partner. In addition, Paraline’s Bruce Schnitzer and John Struck are to become part of the Beat board of directors, which will be chaired by former Willis Re global chief executive John Cavanagh.

Beat will also have a new chief financial officer in the form of Paul Rayner, the active underwriter of Syndicate 4242 and a Paraline Group director.
“This transaction is a great move for our business,” commented Schnitzer, chair of Paraline Group. “It brings together a talented group of established insurance leaders and a powerful shareholder group with a shared, long-term vision.”

Currently Beat has two investments – cyber insurance specialist Tarian and specialty reinsurance underwriter Chord Re – with underwriting support for both facilities led by Neon Syndicate 2468.

“Beat has grown rapidly since its formation in 2017,” noted co-founder Tom Milligan. “This deal gives us access to a second Lloyd’s platform alongside Neon 2468 that benefits our existing investee companies and enhances our offering to proven lead underwriters who have the ambition to build their own business.

“We are delighted to partner with Paraline, who have a track record of successful insurance investment.”