MGA First Underwriting secures £1bn capacity deal to expand into specialist lines
Specialist MGA First Underwriting, a part of Kingfisher UK Holdings, has secured a five-year capacity deal to place c£1 billion of gross written premium into the market.
Working in partnership with Accredited Insurance (Europe), and with McGill and Partners, the deal will provide capacity for the MGA's range of specialty products and new launches planned for 2022.
Accredited’s underwriting programme is supported by A-rated reinsurance, which is arranged by McGill and Partners.
First Underwriting was launched in 2018 focusing on specialist motor. It later expanded across property, casualty and bonds. The company's next phase of growth will be to further diversify the book focused on niche non-motor lines whilst retaining its position in speciality motor.
Tom Donachie, managing director of First Underwriting, said: “We are delighted to announce this new long-term deal, which will help support the next chapter of our journey. Accredited have supported us from our launch and as a result, we have formed a strong and ambitious partnership. It was important we secured a long-term deal with A-rated paper to provide our brokers and their customers with the confidence of a secure market. We plan to continue focusing on specialist lines, providing a superior service to our brokers and leaning on the experience of our team of experts.”
Jacquie Boast (pictred), CEO at Kingfisher UK Holdings, added: “This is a unique and innovative capacity solution which will give First Underwriting the flexibility and scope to build and diversify into a truly multi-line underwriting business. Accredited have been a key partner since First Underwriting’s inception and it is fantastic to now have the certainty of a 5-year capacity commitment from an A-rated partner. This new long-term contract highlights the success of the First Underwriting team and their profitable and sustainable growth over the past 3 years that have delivered quality business and exceptional service to their brokers and partners.”
Colin Johnson, CEO at Accredited said: “We are delighted to expand our relationship with First Underwriting. Having worked well with the First Underwriting team for some time we now regard them as a ‘super MGA’ providing a long term and diversified business stream for us, we look forward to an exciting future together.”
Alan Quilter, group CEO of Randall & Quilter, added: “We are pleased to further extend our relationship with First Underwriting through this long-term arrangement borne out of our focus to develop strategic partnerships with leading MGAs, highly rated reinsurers and the ILS markets in UK, Europe and US.”
Andrew Matson, head of structured solutions at McGill and Partners, commented: “Accredited strength, coupled with the exceptional risk selection of First Underwriting, created a unique opportunity for scale. This, alongside McGill and Partners’ ability to match profitable risk with a broader selection of reinsurance capital, resulted in the provision of a 5-year commitment of £1bn of premium capacity. Removing both the uncertainty of the annual reinsurance negotiations and the significant time commitment of the C suite executives has positioned First Underwriting to focus on profitable growth.”
Did you get value from this story? Sign up to our free daily newsletters and get stories like this sent straight to your inbox.
