The investment was co-led by Giant Ventures and Opera Tech Ventures, with additional participation from Mubadala Capital.
Founded in 2018, Arbol specialises in parametric risk transfer and climate and weather insurance or reinsurance. In 2023, the company transacted $250 million in gross written premium, marking significant growth in its renewable energy and reinsurance sectors. Additionally, Arbol Insurance Services, a fully owned subsidiary, achieved a major milestone in May last year when it became an approved Lloyd’s of London cover holder.
Arbol’s recent endeavors include the launch of Lilypad Insurance, a new carrier dedicated to homeowners and property investors in coastal areas. With its certificate of authority from Louisiana, Lilypad has commenced operations in the state. The company also announced its acquisition of Centauri Specialty Insurance Company and Centauri National Insurance Company, pending regulatory approval.
The freshly secured funding will enable Arbol to further its expansion in the agriculture and renewable energy sectors through customized products that address emerging risks and new markets. Moreover, the capital will bolster Arbol’s international growth and enhance its investment in property and casualty (P&C) and home insurance business lines both in the U.S. and overseas.
Sid Jha, Arbol’s founder and CEO, commented on the news, saying: “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,” he added.
Cameron McLain, Co-founder and Managing Partner of Giant Ventures said: “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.”
Thibaut Schlaeppi, Managing Director of Opera Tech Ventures., added: “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.”
