Kiln buys stake in US cyber specialist NAS
Kiln, the specialist underwriting business that is part of the Tokio Marine group, has purchased a 49 percent share in NAS Insurance, a US-based provider of specialty insurance products and one of the biggest underwriters of cyber risk in Lloyd’s.
Kiln has worked in partnership with NAS since 1975. Based in Los Angeles, NAS underwrites a broad range of specialty professional liability, legal expense, healthcare, entertainment and reinsurance products including cyber and medical billing errors insurance. The company wrote premiums in excess of $75 million in 2013.
“In our industry, scale and flexible distribution, underpinned by financial strength, are vital competitive strengths, so I am delighted to be solidifying our strong, longstanding partnership with NAS through this important investment,” said Charles Franks, chief executive officer of Tokio Marine Kiln.
“Through this deal, which is supported by our parent Tokio Marine, we will continue to capitalise on NAS’s high quality underwriting capabilities, strong management team and proven track record of generating profits, as we continue to enhance our distribution capabilities in strategically important territories around the world. Kiln was founded on strong relationships and empowered underwriting, and we remain committed to building and maintaining long-term, profitable partnerships with high quality businesses.”
The move comes in the wake of Kiln’s investment in WNC Holdings, a voluntary flood and lender-placed insurance specialist, in 2011. Like WNC, NAS will retain its existing brand and management structure and will continue to lead its strategy. The remaining 51 percent majority share of the business will be retained by the existing shareholders.
Richard Robin, CEO of NAS Insurance, said: “NAS has been a committed participant in the Lloyd’s market since we were founded, and in Kiln we have found an exceptional partner through which we are able to grow and develop the business further.
“NAS and Kiln share emphases on innovation, specialty, underwriting profit and excellent service. This new partnership will allow us to continue meeting our goals while being backed by Kiln’s significant financial strength, underwriting know-how and entrepreneurial support. We look forward to delivering profitable growth together.”
In December 2013, Kiln announced that it was set to join forces with Tokio Marine Europe to create Tokio Marine Kiln Group, a provider of specialist and corporate insurance.
