MS Amlin will join from the insurer’s relaunch in December, allowing Folgate to offer greater capacity to the broker market
Folgate Insurance has partnered with MS Amlin for its relaunch in December.
Folgate was put into run-off by Towergate in 2002, but has made a comeback since being bought by managing general agent APC in 2014.
After four years of campaigning, in June Folgate was granted a licence to start writing insurance in the UK by the Prudential Regulation Authority.
The insurer will relaunch with MS Amlin on board as a co-insurer, taking a percentage of the risk and giving Folgate greater capacity to offer the broker market.
The partnership will be writing property, liability, professional indemnity and other lines of business throughout the UK from 1 January 2019.
Ian Russell, chief underwriting officer at Folgate, told Insurance Times the business plans to write around £35m in premium in its first year. He said growth could be boosted by the number of Lloyd’s syndicates exiting lines and reducing capacity.
“I think we’re launching at the perfect time, whereby there is some serious turmoil in the London market,” Russell said. “We can look at those opportunities and work with some long-established MGAs and coverholders.
“I don’t know how quickly it can grow, but it’s going to grow a lot quicker than I thought it would if Lloyd’s carries on doing what it’s doing between now and the end of this year.”
He said the action being taken at Lloyd’s indicated that the market was turning, creating value for MGAs and brokers.
“It’s been far too soft for far too long,” he said.
“As Folgate we won’t be making any knee-jerk reactions to what is going on at Lloyd’s. We’ll be monitoring our book closely and a lot closer to make sure we are not put in a position whereby we have to pull out of everything.
“It’s interesting times, but I know there’s a lot of business coming out of it because I’ve seen it on my desk. We’ll selectively look through those and work with the right cover-holders.”
And Russell confirmed that the deal signed with MS Amlin was a long-term one.
Richard Coxon, head of underwriting – P&C UK at MS Amlin added: “We are incredibly pleased to be partnering with a long established insurer like Folgate Insurance Company and we are very proud to be a part of the launch.
“We believe that the combined experience and expertise of MS Amlin, Folgate and APC will result in a very strong offering for the broker market.”
Folgate and APC plan to eventually merge the companies together with a view to trade under the Folgate name.
From its launch, Folgate will give brokers access to classes such as property, general & professional liability, directors & officers and warranty.
Folgate also underwrites binding authorities through MGAs, independent brokers, and Lloyd’s coverholders.
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