The Evolution of a Weather Company

Vortex Insurance Agency, LLC is a wholly owned subsidiary of MSI GuaranteedWeather, LLC (MSI GW), a long time participant in the weather risk management industry, whose roots run through several corporate ‘structures’, but with a single operating objective throughout its history—successful management of a globally diversified weather risk portfolio.

MSI GW’s weather risk management team began in the industry during 1999 as one of the first market participants and quickly established itself as a leader in the industry. During the early years, MSI GW’s staff was part of Aquila, Inc., a Fortune 100 energy merchant based in Kansas City, Missouri.

In 2003, as part of a major asset sell-off, Aquila sold the MSI GW business to Ramsey Financial, a Midwestern-based asset management firm. Mitsui Sumitomo Insurance Co., Ltd. (MSI) and Hannover Ruckversicherung AG (Hannover Re), both long time capital partners in the business with Aquila, continued their origination and capital support relationships following this sale. Subsequently, in 2007, MSI acquired the business and preserved the capital support of Hannover Re thus creating MSI GW as it is known today. During these changes in ownership, the core MSI GW team has remained intact and continues to operate the business today—the team’s collective experience is unmatched in the industry.

Despite MSI GW’s success in providing weather risk management solutions in the derivatives markets, many potential clients remained unfamiliar (or uncomfortable) with the structure, accounting, and tax treatment of derivatives. To overcome this difficulty, the team at MSI GW partnered with Mitsui Sumitomo Insurance USA Inc. (MSU) to develop an innovative weather insurance program that can address risk associated with any measurable weather variables (for example: rain, snow, heat, wind, etc.). These products offer medium and small companies, as well as municipalities, access to weather risk mitigation products that may have been previously unavailable. To facilitate sales and distribution of these new products, the Vortex Insurance Agency, LLC was formed in Fall 2008.

Vortex Insurance Agency, LLC offers weather insurance policies, underwritten by MSU, a member insurer of the U.S. operation of MS & AD, designed to mitigate the financial risk that weather poses to entities in a variety of industries throughout the United States. The weather insurance policies are sold domestically and insure against the risks of variations in temperature, rainfall, snowfall, or other weather variables. These insurance products are not intended to replace traditional property and casualty insurance, but to supplement such insurance and help protect against significant, but non-catastrophic weather variations that may result in reduced revenue, increased costs or other disruptions in business operations.