Praedicat Announces Series AA Financing Round
Praedicat, the market-leading casualty catastrophe modeling company, announced today that is has completed a $6 million Series AA round of financing. The investment will fund the development of Praedicat’s ground-breaking latency catastrophe models for a wider set of emerging risks and business activities.
“It is increasingly unacceptable for insurers to manage emerging risks by avoiding or excluding them, and Praedicat’s models facilitate growth for our customers by allowing for broader, tailored coverage of emerging risk, and for innovation in new insurance products for latent risks,” according to Dr. Robert Reville, CEO of Praedicat.
The financing was led by Frank V. McMahon, an investor and a partner at American Discovery Capital. Mr. McMahon will bring years of experience as a senior executive in financial service analytics to Praedicat, and will join the Praedicat Board. Existing Praedicat investors Risk Management Solutions, Inc. (RMS) and Jacques Dubois also participated in the financing.
“Liability insurance is a core line for commercial insurance, but it has seen little innovation in 30 years ,” said Mr. McMahon. “I’ve seen other insurtech companies seeking to disrupt personal lines insurance, such as auto and renter’s insurance, but Praedicat’s innovative approach to advance commercial liability insurance is refreshing and exciting.”
“Praedicat’s data on emerging risk are also relevant to other industries,” said Mr. McMahon. “We see the insurance industry as the foundation of Praedicat’s business, but its risk models are relevant to chemicals, pharmaceuticals, personal care products, and more. This financing round will support that expansion as well.”
Praedicat also announced that Jacques Dubois has been appointed as the Chairman of the Praedicat Board. Mr. Dubois has been an investor in Praedicat since its founding in 2012. He retired at the end of 2006 from Swiss Re Group where he had served as a Member of Swiss Re’s Executive Board in Zurich, Switzerland, and as Chairman and Chief Executive Officer of Swiss Re America Holding Corporation, the holding company for Swiss Re’s operations in North America.
“Praedicat is entering an exciting new phase,” said Mr. Dubois. “Our quantitative models will be used to inform insurance and reinsurance transactions. Not only can Praedicat’s data analytics help insurers grow their casualty business, they will assist insurers in demonstrating to ratings agencies and regulators that they have a thorough understanding of their casualty aggregations. Further, other industries will begin to rely on Praedicat’s insights as well.”
“The long tail of casualty insurance is the next frontier of catastrophe modeling, and Praedicat is at the forefront of that frontier,” said Hemant Shah, CEO of RMS and a member of the Praedicat Board. “With this investment, we continue our support of cutting edge innovation at Praedicat, and for the field of risk modeling as a whole.”
Source: Praedicat