Veteran Belgian marine insurance broker Dirk Olyslager believes there is room in his home market for another marine broker.
His confident stance comes after Antwerp-based Proteus Risk Solutions completed a deal that promises to bring one of Belgium’s biggest insurers, Vanbreda Risk & Benefits, deeper into the marine market.
As TradeWinds reported in June, Proteus has acquired a small book of hull and liability business from Vanbreda. In return, Vanbreda has taken a minority stake in Proteus, which rises to a majority shareholding in 2020.
Olyslager, whose career spans more than 30 years working with leading Belgian shipowners, is responsible for integrating the marine division of Vanbreda with marine broker Proteus. That could see the entity double from about 12 people on the hull insurance side to up to 30 people.
Deadline to start rolling
“We have five or six months now to get things rolling,” said Olyslager, who will take charge of the merged operations on 1 January.
Most of the managers will sell their shareholdings in two years' time under the deal, but Olyslager will retain a minority interest as guarantee of his long-term commitment to the venture.
The tight-knit Proteus operation will be brought into the Vanbreda fold of more than 600 people and a turnover of €800m ($927m), merging two different cultures.
But Olyslager says the two companies complement one another.
Vanbreda is largely Benelux oriented. Its marine business is mainly related to cargo insurance and will be bolstered by Proteus' book of hull and liabilities.
“They are buying in a book of business,” said Olyslager, “But also the know-how and good track record of a company that has been growing over the past seven or eight years.”
Vanbreda enters a sector populated by rival insurers Marsh and Aon. Belgium has also attracted increasing interest from other insurers, such as Jardine Lloyd Thompson that entered the market last year with the purchase of marine broker Belgibo.
Part of the interest is attributed to the uncertainty surrounding Brexit, which is leading insurers based in the UK to take an interest in establishing a foothold in the Benelux countries.
But Olyslager believes his company has the ace card in the face of competition from overseas firms.
“Now, with Belgian shareholders, I can develop marine anywhere we want. There are no limitations,” he said.
“That’s what we’ve been doing with Proteus, finding business in Europe, in the US, and in the Far East. Where we see opportunities, we develop it.”
Organic growth
Olyslager talks of “organic growth” for its retail broking business, and opportunities for acquisitions in national and international markets.
“It’s only the start, but we now have a platform,” he said.
He argues that Antwerp is seen as a good hub with a core base of shipowners, who he clearly hopes will stay loyal to their compatriot company.
“There is a Belgian market, and there should be a Belgian broker also,” he said.
Olyslager is optimistic on the prospects of the market with hull premiums rising and capacity shrinking as syndicates withdraw. Mergers will also be good for the sector.
He launched the marine broking business after a career spanning more than 25 years in the Compagnie Maritime Belge (CMB)-Exmar group.
Olyslager was supported in the move by Marc Van Mael of shipbroker Sobelnord and long-term business partner Walter Justers.
A joint venture with German insurer Junge saw the marine broking business launch on 1 April 2011 with a few major Antwerp clients, including tanker giant Euronav. In 2015 and 2016, there was talk of Junge Antwerp being sold to Aon.
Although this did not happen, preparation for a possible sale provided the opportunity in 2016 for management to successfully buyout their German partner and establish Proteus.
Initial contact with Vanbreda began in early 2017 and led to the takeover being completed within 18 months.
CMB director Benoit Timmermans remains chairman of Proteus alongside board member Peter Raes of Sea-Tankers.
