BEDFORD HILLS, N.Y., Sept. 29, 2015 /PRNewswire/ -- Today Joule Assets Inc., the leading provider of financing solutions for the energy efficiency and demand management industries, announced the industry's first portfolio-wide insurance offering with Hartford Steam Boiler (HSB), a global leader in equipment insurance and part of Munich Re. The performance insurance product provides scalable energy savings insurance solutions for Joule contractors by underwriting at the portfolio level.
Joule Assets has sought to bring sophisticated financing products to the large and untapped market for efficiency upgrades in small and medium enterprises (SMEs), and this insurance offering represents a significant step in that regard for both Joule and the industry overall. The implications of this product are especially significant for Joule's contractors who will now be able to offer their customers no upfront cost solutions backed by performance insurance. For investors in Joule's ERA Fund, insurance on energy performance cash flows provides a path to securitization for Joule's portfolio with corresponding benefits of increased velocity of capital, reduced portfolio risk and amplified portfolio returns.
"The market for efficiency retrofits for small and medium enterprises presents a significant opportunity for new and creative approaches to financing," said Dr. Richard B. Jones, HSB senior vice president for engineering and research. "Products developed for this market, however, must be cost-effective. HSB's portfolio underwriting approach to developing this new product enhances the value of energy efficiency projects, without adding burdensome costs."
"HSB's innovative insurance product will allow Joule Assets to lower their loan loss reserves and deploy more capital in an underserved market," noted Dennis Quinn, Joule Assets' COO. Joule Assets ERA Fund serves a critical, unmet need in the market by connecting investors with the next wave of energy efficiency projects generated by small and medium enterprises (SMEs). Deutsche Bank estimates a market size of $279 billion in the U.S. alone, 97.5% of which sits in SMEs. This market is virtually untapped due in large part to market barriers including lack of access to sophisticated financial products. The symbiotic nature of the fund allows investors to reap the benefits of the attractive returns associated with energy efficiency, while providing smaller-scale contractors with the same quality of financing that large-scale energy efficiency projects have enjoyed. This insurance product sends an important signal for a number of counterparties in these transactions including the contractor, customer and Joule ERA Fund investor alike.
"One of Joule's differentiators is its strength in onboarding and vetting contractors and their projects and monitoring project health through ongoing measurement and verification of performance. We're proud to have developed a due diligence process that is strong enough to attract world-class partners like HSB," Mr. Quinn added. "In a market that has been historically underserved, this is yet another milestone in our long term effort to create a strong capital source for the small and medium commercial sector and to provide investors an investment vehicle with compelling risk adjusted returns."
Hartford Steam Boiler (HSB), a member of Munich Re's Risk Solutions family since 2009, is a leading engineering and technical risk insurer providing equipment breakdown insurance products, other specialty coverages, and related inspection services and engineering consulting. Founded in 1866, HSB's difference is grounded in extensive technical knowledge with over 50 percent of its staff engineers, inspectors and technical personnel around the globe. We leverage our knowledge to anticipate future risks and develop a range of specialized solutions that enable our clients to build deeper and more profitable customer relationships. HSB holds A.M. Best Company's highest financial rating, A++ (Superior). For more information, visit www.hsb.com and connect on LinkedIn, Twitter and Facebook.
About Joule Assets
Joule Assets delivers financing solutions for energy efficiency and demand management initiatives and projects. Through its first-in-kind Joule Energy Reduction Asset (ERA) Fund, a global private equity fund initially targeting $100M, Joule provides previously unavailable, upfront financing to energy efficiency projects, cycling returns from monetized energy savings back to Fund investors. Joule Assets leverages its proprietary database, market analysis software, and extensive industry expertise to deliver a secure financing option for vendors and untapped revenue streams for investors. You can learn more about Joule Assets and the ERA Fund at: http://www.jouleassets.com/ or apply for a consultation here. You can also follow us on Twitter @JouleAssets.
MissionCTRL for Joule Assets
SOURCE Joule Assets Inc.