Pen Underwriting, one of the UK’s largest managing general agents (MGA), has expanded into marine insurance through the acquisition of specialist firm Tay River Holdings.
The deal includes Tay’s specialist wholly-owned subsidiaries Vessel Protect, Trafalgar Marine Trades and BMM Ports and Terminals.
The value of the deal has not been disclosed.
Tay was formed in 2020 by marine underwriters Paul Hartley, James King and Chris Goddard as a managing general agent backed by A-rated Lloyd’s of London syndicates.
It currently employs a team of 17 and generates more than £90m ($112m) in gross written premium annually through its focus on marine liability, ports and terminals, war risk and kidnap and ransom.
Pen, a part of the Gallagher group of companies, describes itself as a “virtual underwriter” that can fulfil all the typical functions of an insurance company — from underwriting, sales and distribution, pricing and analytics, product innovation, risk and governance through to claims handling.
Its goal is to become a £1bn gross written premium underwriting and distribution business.
Pen chief executive Tom Downey said: “In Tay, we have found a high-quality underwriting business that shares our focus on writing profitable, sustainable business underpinned by a robust underwriting discipline and excellent capacity management – one that will enhance our ability to underwrite global portfolios of complex, international risks”
Tay founder and managing director Paul Hartley said Pen’s ownership would help the business grow.
“We want to take the business to the next level and Pen, with its depth of resources and established ‘virtual insurer’ infrastructure, offers us the ideal home to continue our story of expansion and diversification in niche areas of the marine market,” he said.
