Tax credit insurance is gaining further institutional support after New Energy Risk (NER) obtained Lloyd’s coverholder status, enabling it to underwrite risks tied to clean energy incentives.
NER has added Lloyd’s capacity to a product line it entered in 2025. In September of that year, the company completed its first tax credit insurance transaction, binding a policy for a utility-scale solar project in Texas in partnership with Alliant Insurance Services.
The project supported electricity supply for a data center, reflecting demand linked to expanding US data infrastructure. At the time, NER said it intended to deliver capacity to the tax credit insurance market by combining tax and technology underwriting expertise, including for Section 45 and Section 48 credits.
NER has now received Lloyd’s coverholder status through its parent, Paragon Insurance Group, effective April 1, 2026. The designation authorizes the company to underwrite and bind insurance on behalf of Lloyd’s syndicates, adding capacity to its tax credit insurance products.
NER’s tax credit insurance addresses risks related to the availability, transferability and monetization of tax credits used in clean energy financing. The Inflation Reduction Act of 2022 introduced transferability of credits, increasing the range of investors participating in these transactions and contributing to demand for risk transfer solutions.
Subsequent legislative changes in 2025, including the One Big Beautiful Bill Act, retained tax credits as a financing mechanism for energy infrastructure, with adjustments to timelines for certain renewable energy projects.
“Achieving Lloyd’s coverholder status represents an important validation of our underwriting discipline, risk management framework, and expertise in tax credit risk,” said George Schulz, CEO of NER. “Our ability to combine technical underwriting, legal expertise, actuarial rigor and market insight allows us to provide scalable, high-quality insurance solutions that help investors, developers and lenders manage tax credit risks with confidence.”
OAK Global sponsored NER’s application and will underwrite the business through Syndicate 2843 (OAK Reinsurance). The business will sit within OAK Global’s Transition TCX class, which focuses on climate and technology-related risks.
“We are excited to work with OAK Global as a leading capacity partner,” added Schulz. “Their innovative underwriting philosophy, combined with deep underwriting expertise and focus on execution, is an opportunity that will allow us to grow this market.”
The delegated authority structure allows NER to originate and bind tax credit insurance risks while accessing Lloyd’s syndicate capacity. OAK Global has also been developing its underwriting platform. In March 2026, the firm appointed James Irvine as active underwriter for Syndicate 2843, alongside his role as CUO of OAK Reinsurance.
The sponsorship forms part of OAK Global’s OAK Horizon unit, which began operations on January 1, 2026. The unit underwrites risks across the climate and technology ecosystem using capacity from OAK Global’s Lloyd’s syndicates, including areas such as energy financing, parametric solutions and technology-related asset protection.
“New Energy Risk has built significant expertise in a segment that’s critical to the US energy transition. We’re pleased to sponsor their coverholder status at Lloyd’s and to work alongside them through OAK Horizon, where tax credit insurance fits naturally with other innovative structures supporting the financing of low-carbon infrastructure,” said Cathal Carr, founder and CEO of OAK Global.
Tax credit insurance has developed alongside US clean energy policy and is used in transactions where investors seek protection against risks tied to eligibility and realization of credits. NER’s move follows its initial entry into the segment in 2025 and connects its underwriting platform to Lloyd’s syndicate capacity and distribution.
