Fairfax’s Brit sells ‘fast growing’ MGU operations for $400m

Specialty re/insurer  Brit, a subsidiary of  Fairfax Financial Holdings, has agreed to sell its “fast-growing” MGU operations to Amynta Group, which comprises a number of warranty, managing general agent (MGA) and specialty risk companies, for $400 million. The deal will enable Brit to focus its strategic priorities on its core underwriting and digital capabilities.

Amynta is to acquire Ambridge Group and enter into a multi-year agreement for Brit to be a significant capacity partner to Ambridge. The transaction includes Ambridge in the US and international units in the UK and Germany.

Ambridge is a global managing general underwriter (MGU), offering a broad range of transactional, specialty casualty, cyber, professional liability and reinsurance coverages. Ambridge places over $600 million of gross premium written on behalf of Brit and a number of global insurers. Ambridge was founded 22 years ago by Jess Pryor, executive chairman of Ambridge, and Jeff Cowhey, chief executive officer of Ambridge, who will continue to lead the Company.

The deal is subject to customary closing conditions, including regulatory approvals, and is expected to close in the second quarter of 2023.

“Ambridge significantly expands our MGA business, now writing over $2 billion in premiums, and significantly increases our business in the E&S market,” said Robert Giammarco, chairman and CEO of Amynta Group. “Ambridge will operate on a decentralised basis and we look forward to supporting Jess, Jeff and the Ambridge team in growing their business over the long term.”

Jess Pryor, executive chairman of Ambridge, commented: “As part of the Brit Group, we have developed into a leading specialist MGU and Amynta is the right partner to enable our continued growth and evolution. Their focus on working with entrepreneurial MGUs, underpinned by deep experience and strong market relationships, makes them a natural fit for Ambridge and our customers. Their platform supports our underwriting and service led model and will enable us to continue delivering innovative solutions to our customers.”

Martin Thompson, CEO of Brit, said: “Jess and Jeff have built a great business in Ambridge and, with the combination with BGSU in 2021, established a highly regarded and fast-growing international MGA. While we are proud of what we have helped to create, we believe now is the appropriate time for Brit to realise the value of its investment as we focus our strategic priorities on our core underwriting capabilities across our broad distribution networks and our investment in building out market leading digital capabilities to support this. In Amynta we were pleased to find the perfect owners to take Ambridge forward, in particular as they are building a high quality MGA business. Importantly, Ambridge and Amynta remain key partners for Brit, and we look forward to a long and deep relationship with them as an independent MGA.”

Did you get value from this story?  Sign up to our free daily newsletters and get stories like this sent straight to your inbox.