XL Group plc, Announced the creation of XL Innovate, an XL sponsored venture capital initiative. The new fund will be led by Tom Hutton, known for his leadership in the creation of successful insurance and financial technology ventures.
XL Innovate will be financially backed by XL and will invest in companies that have a strategic focus on developing new capabilities in the insurance sector. The fund will take equity positions in companies that provide new market opportunities for XL throughout the world. XL Innovate will strive to create partnerships outside of the traditional underwriting space to find ways to underwrite currently uninsured risks.
“We are very excited to launch this new initiative, which will extend XL’s capabilities in existing markets and give us new opportunities to address some of the most pressing and complex risk problems in the global economy.”
“XL Innovate is an important step as we continue to drive our focus on innovation forward and secure the relevance of XL and the industry well into the future. We are particularly pleased to have Tom Hutton, and his strong track record of insurance innovation, partnering with the XL team.”
Most recently, Mr. Hutton served as the CEO and founder of New Energy Risk Inc., a provider of innovative data analytics, strategic consulting and financial risk transfer solutions to the renewable energy industry worldwide, which partnered with XL last year to launch an innovative fuel cell insurance product.
Tom Hutton added: “I am thrilled to be partnering with the XL team at a time of both industry transition and great momentum at the company. Mike McGavick has led the creation of a forward looking and creative culture at XL that makes it an ideal sponsor for this initiative, which will be further enhanced by XL’s proposed offer to acquire Catlin Group Limited, and to form an even stronger company. We look forward to being a unique partner to entrepreneurs with the vision and ambition to address new risks with new solutions, unconstrained by geography, scale, or traditional thinking.”
In addition to Mr. Hutton, the fund will be led by an investment team with successful experience in identifying, funding, and growing innovative ventures in financial technology and insurance.