Ryan Specialty agreed to acquire managing general underwriting platform Castel Underwriting Agencies Ltd. from Arch Financial Holdings (UK) Ltd., expanding Ryan’s MGU capabilities in London and Europe.
Castel will be acquired from Arch UK and minority shareholders, Ryan Specialty said in a statement. Headquartered in London, Castel has 13 MGUs and offices in the Netherlands and Belgium.
Terms of the transaction were not disclosed. The acquisition is expected to close in the first half of 2024, subject to regulatory approvals and closing conditions.
Castel’s MGUs have a diverse portfolio of underwriting expertise, including transactional liability, renewable energy, construction and marine, among other specialty lines, Ryan Specialty said. The breadth of Castel’s offerings and its geographic concentration in the United Kingdom and Europe add significant capabilities to Ryan Specialty’s MGU portfolio, the company said.
Castel generated about £35 million ($44.6 million) of operating revenue for the 12 months ended Nov. 30, 2023, Ryan Specialty said.
“Castel is a first-class organization with a history of exceptional performance on all metrics, including underwriting profit and growth,” Patrick G. Ryan, chairman and chief executive officer, Ryan Specialty, said in a statement. “Bringing Castel into Ryan Specialty expands our U.K. and European footprint in delegated authority, and the lines of business underwritten by these MGUs are both complementary and accretive to our firm.”
“Many of Castel’s MGUs are recognized as market leaders in their distinctive niches, attracting support from some of the highest-quality capital in the industry,” said Miles Wuller, president and CEO, Ryan Specialty Underwriting Managers, in a statement. “The Castel team has a proven approach to attracting top talent to support de novo MGU formation, which will be invaluable as we seek further international expansion.”
“We look forward to continuing our successful relationship with Castel and Ryan Specialty,” Hugh Sturgess, president and CEO, Arch Insurance International, said in a statement.
Ryan Specialty recently formed an international financial lines MGU by unifying the operations of several existing MGUs. The new entity, Ryan Financial Lines, combines the operations of EmergIn Risk, StartPoint Executive Risks, Ryan Specialty Nordics, Capital Bay and professional liability portfolios within Ryan Specialty National Programs, the group said at the time.
All of these MGUs and programs are currently a part of Ryan Specialty Underwriting Managers within Ryan Specialty.
Castel Underwriting Agencies Ltd. has a Best’s Performance Assessment of PA-2 (Excellent).
Underwriting entities of Arch Capital Group Ltd. have current Best’s Financial Strength Ratings of A+ (Superior).