Gallagher Re snaps up $210m GWP Lloyd’s binder broker from Optio
Global reinsurance broker Gallagher Re has acquired specialty MGA Optio Group’s London market binder broker Bay Risk to “deepen” its delegated authority specialism as it looks to ramp up its global programmes practice offering.
Established in 2016 as an independent Lloyd’s broker, Bay Risk Services specialises in structuring and placing contracts of delegated underwriting authority and, with its eight-strong team, manages gross written premiums (GWP) of $210 million.
Led by joint managing directors Andrew Smallshaw and Robin Barker-Hahlo, Bay Risk will become part of Gallagher Re’s Global Programmes practice group, led by Andrew Moss, which manages GWP of approximately $6 billion.
Bay Risk serves the needs of niche programme managers, managing general agents (MGAs), Lloyd’s coverholders and carriers seeking alternative distribution channels across a variety of speciality insurance classes, including property, casualty, energy, political risk, subcontractor default, warranty & indemnity, nuclear, professional indemnity and marine.
Tom Wakefield, UK CEO of Gallagher Re, said: “Last year, having seen the huge opportunity for a reinsurance broker to bring together all the capabilities that MGAs and coverholders need, we created our Global Programmes practice group to serve clients with a one-stop shop for capacity and capital, data and analytics.
“Our London market team of specialist binding authority brokers are an integral part of that offering and the potential to expand the practice further through quality acquisitions is part of our growth strategy.
“We are therefore delighted that the team at Bay Risk has chosen to join with u Chooses, here in London, to deepen our delegated authority specialism and further enhance the quality and breadth of support and services we can offer clients. We know that Andrew, Robin and their colleagues will be a great fit with our team and look forward to welcoming them into the Gallagher family.”
Matthew Fosh, executive chairman, Optio Group, said: “We are delighted to have reached agreement with Gallagher Re and the Bay team to deliver what is an excellent outcome for all three parties. Not only will Bay flourish under the wing of a global broker with the scale and reach of Gallagher, but Optio will continue to work closely with Bay within the expanded Gallagher group, while independently focusing exclusively on what it does best: being a specialty MGA run by underwriters.”
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