19 May 2014 Insurance

Capita finances another start-up MGA

Capita Insurance Services has completed a transaction to finance the start–up of Pardus Holdings by taking a minority stake.

As part of the transaction Capita will provide business outsourcing services to Pardus Holdings’ wholly owned Managing General Agent (MGA) subsidiary Pardus Underwriting, through a long term contract.

Pardus has been formed by experienced market practitioners Keith Thompson and Darren Stockman and aims to introduce a number of classes of business during the course of this year, initially underwriting North American property insurance backed by Lloyd’s Security.

This is Capita Insurance Services’ third investment in an MGA and is part of a strategy to build a portfolio of minority equity stakes in MGAs combined with business process outsourcing contracts.

This is the latest MGA funding in a pipeline of transactions expected throughout 2014, as Capita’s investment in MGAs, which started just over 12 months ago.

John Holm, executive director of Capita, said: “I am delighted to be announcing Capita’s latest MGA transaction. With significant activity in the MGA market our strategy of focusing on only investing in specialist, high quality businesses with experienced management teams is proving vital. Pardus fits this exacting criteria closely.

“Capita’s approach combines finance and business process outsourcing and is proving attractive to MGAs. We look forward to and anticipate that Pardus’ business will see growth and expansion during the course of 2014 and beyond.”

Keith Thompson, chief executive officer of Pardus, said: “We are delighted to launch Pardus as an independent MGA in the London Market. Our focus is to develop a business that provides “added value” to our insurance partners. With Capita’s support and infrastructure we are well positioned to identify opportunities which can deliver clear benefits to all parties.”

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