Ardonagh sells Fusion, Arista and Towergate Commercial MGA brands to Arch
The Ardonagh Group has announced it has entered into an agreement to sell its Commercial MGA businesses to Arch UK Holdings Limited which is conditional upon performance criteria for a consideration of up to £31 million.
From 1st January 2019, the books of business supporting the information to renew for the Arista, Fusion, Towergate Personal Accident and Travel, and Towergate Commercial MGA brands will transfer to Arch along with approximately 250 employees from these businesses and nine associated offices.
Proceeds of the sale will be used for further investment in the Group.
Geo Underwriting’s Personal Lines, Private Clients, Specialty and Agriculture brands AIUA and BIBU remain as part of The Ardonagh Group.
Commenting on the announcement today, CEO of The Ardonagh Group David Ross said:
“Almost 18 months after the creation of the Group, we now find ourselves looking across our portfolio and assessing where we can drive organic growth from leading positions.
“For us, an MGA is most effective in niche and specialist areas. While we’ve undertaken strategic remediation actions within our commercial MGA lines over the past two years and worked with carriers to improve loss ratios, these books now fall outside that strategy and we believe are best placed to succeed within an insurance company. Arch therefore provides the perfect platform from which to drive these businesses forward.”
Paul Dilley, CEO of Geo Underwriting added:
“The Group remains committed to our niche businesses in personal lines, agriculture, and UK specialty markets where our offerings from Geo Underwriting and its partners remain market leading.
“In Arch, our commercial MGA brands have found the ideal home, a renowned global insurer brand with a strategy focused firmly on future growth and expansion into new markets.”
The Geo journey has begun.
An exciting future lies ahead as our Towergate businesses move over to Geo. From 1 February 2018, our personal lines business joins Geo Specialty in operating under the Geo brand. The move marks the next step in a programme of change as we transform into an agile MGA structured for long term success in an evolving insurance market.
Our commercial businesses will soon also move over to Geo, completing the operational phase of the transition. But that’s by no means the end of it. We’re on a journey to make a difference. To carriers. To brokers. To the industry as a whole. Geo is the start of that journey.
We look forward to sharing it with you.
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