The Ardonagh Group will sell its commercial underwriting business to Arch for £31m.
The group will sell the commercial lines business of its managing general agent, Geo Underwriting, resulting in the transfer of 250 employees to Arch.
The personal lines, private clients, specialty and agriculture MGA business will remain within Ardonagh.
“For us, an MGA is most effective in niche and specialist areas,” said Ardonagh CEO David Ross.
“While we’ve undertaken strategic remediation actions within our commercial MGA lines over the past two years and worked with carriers to improve loss ratios, these books now fall outside that strategy and we believe are best placed to succeed within an insurance company.
“Arch, therefore, provides the perfect platform from which to drive these businesses forward.”
A statement from Arch said: “The transaction is an asset-only deal that includes the renewal rights for Fusion, Arista and Towergate Commercial Underwriting, generating more than £150m of gross written premium in 2017 and focused on writing commercial property, casualty, motor, professional liability, personal accident and travel.”
Matt Shulman, president and CEO of Arch Insurance Europe, added: “By expanding our regional presence with the addition of nine offices we immediately gain scale and presence in our target markets and we can deliver a broader range of specialist insurance solutions through a network of over 2,000 brokers.
“We are gaining a well-respected and highly experienced team of underwriting and distribution professionals who are perfectly placed to help us build a significant and sustainable business that can meet the growing needs of its clients.”
#News: The insurance industry is putting forward ideas to make it easier for the financial sector to invest in greener assets, unlocking billions of pounds worth of funds which could help mitigate the impact of #ClimateChange https://t.co/icxnybN0Lp pic.twitter.com/68IovgDTJq— ABI (@BritishInsurers) March 11, 2019
- Claims Apprentice 2019: Episode 1 - Meet the teams
- Insurance Institute of Ireland pulls member magazine cover after industry reaction
- Insurtech saw ‘possible’ data breach earlier this year
- Aviva wins landmark appeal in fundamental dishonesty case
- Insurance fraud rises 27% finds Cifas
- Blog: Subsidence - urban myth or epidemic
- Ageas office closures result in 430 redundancies