Arbol raises $60 million
Arbol, a climate risk solutions provider operating in over 15 countries, has closed a $60 million Series B funding round co-led by Giant Ventures and Opera Tech Ventures, with participation from Mubadala Capital.
Founded in 2018, Arbol offers a variety of solutions around parametric risk transfer and climate and weather insurance/reinsurance. The company transacted $250 million in gross written premium in 2023, with significant growth in its renewable energy and reinsurance businesses. Arbol Insurance Services, a wholly owned subsidiary of Arbol, became an approved Lloyd’s of London cover holder in May last year. Arbol recently announced the launch of Lilypad Insurance, a newly established carrier dedicated to serving the unique insurance needs of homeowners and property investors in coastal areas. Lilypad received its certificate of authority from Louisiana and has begun operations in the state. Subsequently, it announced the acquisition of Centauri Specialty Insurance Company and Centauri National Insurance Company, subject to regulatory approval.
The funding will support Arbol’s continued expansion into agriculture and renewable energy through products tailored for new perils and geographies. The capital raised will also support Arbol’s global expansion and broaden its investment in property and casualty (P&C) and home insurance business lines in the U.S. and internationally.
“This Series B funding marks a pivotal moment for Arbol, affirming our achievements and propelling our mission forward to normalize parametric financial products and insurance globally as key strategies in climate risk management. Our ambition extends from empowering the world’s smallest subsistence farmers in underserved regions to securing the assets of the world’s largest corporations, ensuring they all have access to unmatched protection amidst the unpredictability of climate change. Our approach is not just about offering insurance; it’s about creating a safety net that spans the entire spectrum of economic participants affected by climate volatility.” – Sid Jha, Arbol’s founder and CEO.
“You can’t go a week without reading an article about extreme weather events occurring and the challenge this poses for traditional insurers. Arbol’s pioneering approach enables businesses, large and small, to manage climate risk where traditional insurance fails. Their achievements are hugely impressive, and we believe they’re building an essential pillar of climate adaptation and the global financial infrastructure.” – Cameron McLain, Co-founder and Managing Partner of Giant Ventures.
“While climate change is more and more tangible, the need for hedging solutions that are scalable and economically sustainable is becoming key. Leveraging insurance and capital markets offers Arbol’s clients a pivotal solution to build the financial resilience they need.” – Thibaut Schlaeppi, Managing Director of Opera Tech Ventures.
