The venture, initially targeting Europe and North America, will operate under a Lloyd’s consortium, spearheaded by Beat Syndicate 4242. Stephen Pike, appointed as CEO and founder, will lead Convergence, aiming to address the burgeoning need for portfolio solutions among banks and global financial institutions, specifically focusing on credit risk insurance.
According to Beat, which specialises in long-duration investments within the insurance sector, Convergence’s approach will leverage advanced technology and data analytics, facilitated by a proprietary algorithmic modeling platform developed in collaboration with University College London (UCL). This platform will enable Convergence to efficiently integrate and enhance the extensive data provided by financial institutions, promising unparalleled efficiency and precision in economic risk management services.
Stephen Pike, boasting two decades of credit expertise, notably served as the global head of credit and political risk (CPR) at Canopius, where he pioneered the evolution of the global reinsurer’s proposition from single situations to portfolio credit solutions. Prior to that, he held key roles at ED&F MAN Capital Markets and Merrill Lynch, amassing diverse experience in credit and portfolio analysis.
Joining Pike is Jeremy Hatchuel, appointed as co-founder and partner, who brings a decade of quantitative expertise at the nexus of capital markets and insurance. Hatchuel’s background includes roles at Aon Securities and Canopius CPR, where he led the portfolio solutions function, reinforcing Convergence’s commitment to innovation and expertise in the credit insurance domain.
Pike said: “Convergence will be launched to take advantage of the many opportunities available in the CPR market. It is a complex sector and the team has a wealth of experience.
“We will be data driven and have developed a proprietary model with UCL which will provide scalable solutions for our clients. Our purpose-built technology, industry knowledge and understanding of individual clients will give us a market leading position.”
John Cavanagh, chairman of Beat, also commented, saying: “Beat is always looking for fresh and innovative insurance business ideas led by entrepreneurs with extensive knowledge and expertise in their field.
He added: “Stephen stood out in this class due to his depth of client understanding and unique focus on bringing the best-in-class technology to launch a truly differentiated business in the credit insurance market. We look forward to working with them when they get started and to supporting their innovation.”
