A strategy fit for Europe
Ryan Specialty Group (RSG) has grown exponentially and gone from strength to strength since it was founded in 2010 by Pat Ryan, founder and retired chairman and CEO of Aon. RSG has been created on a different model that is both robust and unique with its three pillars: RT Specialty wholesale brokerage; RSG Underwriting Managers (RSGUM); and the UK business processing outsourcing entity, Ryan Direct Group (RDG).
RSGUM incorporates 13 underwriting managers in North America and its expansion into Europe with the three London based managing general underwriters (MGUs) servicing the needs of international brokers and their clients.
At the end of 2014, RSG appointed Peter McKenna, a former AIG veteran, as managing director with responsibility for RSGUM’s strategy in Europe.
McKenna has been busy. RSGUM Europe now has three managing general underwriters, each of which targets niche, specialist lines of business which are partly immune to the current endemic soft market but also lines that are tipped for accelerated growth in the future.
McKenna, who spent 20 years in a variety of senior roles at AIG in the US, Canada and the UK, most recently as head of financial lines, EMEA, says he was attracted to the role because of the clarity of the vision and ambition portrayed by RSG.
“The key differentiator, however, is the talent and underwriting expertise we attract. This adeptness allows a speed to market in areas that are underserved at the moment and that, in turn, facilitates growth. RSG is a world-class organisation which I am very excited to be a part of.
“The insurance market as a whole is going through some demanding times, but even now there are many opportunities to create platforms, grow and generate profit for a solid return on capital.”
Footholds in Europe
RSGUM Europe has three MGUs. Hunter George & Partners (HG) is a specialist MGU providing insurance solutions for mergers and acquisitions (M&A) focused on Europe. HG came to RSGUM by acquisition, which was completed in January this year. HG’s founders Ian Theato and Tim Martin continue leading the business, which underwrites warranty and indemnity (W&I), commercial tax liability and contingent risk insurance.
Despite turbulent macroeconomic conditions, underlying M&A deal volumes continue to grow year on year. Businesses are sitting on an estimated £4.5 trillion ($6.35 trillion) in accumulated cash reserves globally, but dealmakers continue to be risk-averse. The number of deals purchasing W&I insurance has risen exponentially in the last five years, and clients are aligning themselves with high quality and knowledgeable underwriters.
