Nexus Underwriting announced that it has completed the acquisition of a majority stake in Spectrum Risk Management, a specialist MGA headquartered in Dubai that focuses on marine and property insurance and reinsurance.
Financial details of the deal were not disclosed.
This is the 16th acquisition for Nexus since its formation in 2008 and the 26th acquisition for Nexus’ parent company, Kentro Capital.
Spectrum is led by Michael Darby who has in excess of 40 years’ experience in the re/insurance industry and oversees the marine proposition. Andrew Crampton leads the property portfolio with over 25 years’ underwriting experience in the class, including previous senior positions with Swiss Re and Lloyd’s syndicates.
The Spectrum management team will continue to run the business as normal post-transaction while maintaining an ongoing minority stake in the business. Post-acquisition, Spectrum will transition to the Nexus brand.
Spectrum underwrites two core portfolios: marine (including marine hull, cargo and liability classes) and property (including above-ground mining, operational power and onshore energy).
“The completion of this acquisition celebrates not only Nexus’ 16th MGA acquisition, but a landmark acquisition whereby our partnership with Spectrum expands our geographical footprint to Dubai. This deal also sees us acquiring a like-minded entrepreneurial business with similar core values and a proven focus on underwriting profitability,” commented Colin Thompson, CEO Kentro Capital and CEO of Nexus Underwriting.
“We are pleased to welcome Michael, Andrew and the rest of the team to the group. With the teams’ experience sitting alongside our institutional infrastructure, we see a clear opportunity to build a Nexus Dubai business underwriting in excess of US$50 million in gross written premium over the next three years,” Thompson added.
“All of us at Spectrum Risk Management are delighted to have the opportunity to partner with such a successful and respected company as Nexus Underwriting,” according to Michael Darby, founder and managing director of Spectrum.
“We believe that our product lines and presence within the MENA and Asia Pacific market fits perfectly with their established portfolio,” Darby continued. “Spectrum’s underwriting philosophy, technical expertise and relationships with our capacity providers as well as markets will remain fundamental going forward. In addition, our valued clients and partners will have access to the Nexus platform with its obvious benefits as we enter the next exciting phase of Spectrum’s growth.”
About Nexus
Founded in 2008 and with its global headquarters in London, Nexus Underwriting is an independent, specialty managing general agent with a focus on niche insurance classes of business. Nexus is a wholly owned subsidiary of Kentro Capital Ltd., a holding company with a focus on investing in MGAs and insurance brokers globally. Kentro provides institutional support to its wholly owned businesses and employs over 350 staff in eight countries: UK, France, Germany, Italy, The Netherlands, USA, China (Hong Kong SAR) and Malaysia (Labuan FT).
Source: Nexus
Topics Mergers & Acquisitions Insurance Wholesale Risk Management
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