Nationwide will own 50 percent of the new entity, with RSG and RSG-related investors holding the remaining 50 percent. Both the parties have agreed to a strategic partnership that will help them grow in the specialty lines market.
Geneva Re is expected to begin underwriting business from July 1, 2019, subject to the approval of the Bermuda Monetary Authority.
Michael O’Halleran will serve as executive chairman of the new company. Ryan Re, an RSG affiliated company led by CEO and president Brian Boornazian, will act as the exclusive underwriting manager for Geneva Re.
Additionally, Nationwide will appoint Ryan Re as its exclusive underwriting manager for third-party property and casualty treaty reinsurance business flowing through Geneva Re.
RSG said Geneva Re will immediately have the financial strength to accept a diversified portfolio of reinsurance business from Ryan Specialty Group underwriting programmes.
"RSG and its operating companies, RT Specialty and RSG Underwriting Managers, look forward to expanding the already successful relationship we have enjoyed with the Nationwide companies since our inception in 2010, and further enhancing this partnership with Geneva Re and Ryan Re," said Patrick Ryan, founder, chairman and CEO of RSG. "It has been our goal since RSG’s formation to more fully align our interest with our clients. Through Geneva Re, we will be able to accomplish this objective.”
Mark Berven, president and COO, Nationwide property and casualty, added: “We look forward to furthering our relationship with Ryan Specialty Group, who is today one of our largest E&S/specialty distribution partners. This relationship will create new opportunities for both organisations to expand our reach and serve additional niche markets that are currently underserved.”
O’Halleran said: “I am thrilled to be part of the new partnership between RSG and Nationwide. Ryan Re and Geneva Re, with the support of our founding shareholders, will immediately have significant financial strength and be able to accept a diversified portfolio of reinsurance business.”
Brian Boornazian noted: “I believe we are bringing an unprecedented proposition to the reinsurance market. Combining the quality and balance sheet strength of Nationwide (A.M. Best Rating A+ (Superior), FSC XV), the innovation and market presence of RSG, and the well respected and experienced underwriters will uniquely position Ryan Re to provide the security and underwriting insight to our brokers and clients desire.”