The ‘great partnership’ will allow Mum to achieve ‘the next level of growth’ while also bolstering Pen Underwriting’s ‘bench strength’

MGA Pen Underwriting has bought Manchester Underwriting Agencies, including its wholly owned subsidiary Manchester Underwriting Management (Mum), for an undisclosed sum.

The specialty underwriting business was established in 2010 by founder and chief executive Charles Manchester. Today, it has 50 employees and generates over £60m in gross written premium (GWP) over its key business lines of professional indemnity, management liability and casualty.

Mum operates across five locations in the UK, focuses mainly on SME business and deals exclusively through brokers.

Pen Underwriting’s chief executive Tom Downey believes the acquisition will provide “breadth and depth as well as real bench strength” to the MGA’s operations.

He explained: “When we set out our strategy of accelerated growth last year and vision to become a £1bn GWP underwriting and distribution company, we made [it] clear that the acquisition of quality, specialist underwriting businesses led by highly skilled and respected management teams would be a core and critical element. Mum demonstrates every single one of those traits and much more.

“Its financial lines specialisms are complementary to our own, adding breadth and depth as well as real bench strength in new areas of professional indemnity, like surveyors and valuers and UK insurance brokers.”

Shared mindset

Meanwhile, Manchester described Pen Underwriting as “the right partner”, adding that the firm “shares our mindset and our motivations”.

He continued: “I am incredibly proud of the business we have built together as a team over the last decade – respected in our chosen sectors, backed by high-quality, A-rated capacity and consistently profitable.

“Becoming part of a larger group will enable us to deliver the next level of growth but it had to be with the right partner.

“Pen’s management team shares our mindset and our motivations. This will be a great partnership for colleagues, capacity partners, broker clients and customers alike.”

Downey added: “Culturally our businesses are brilliantly aligned. Like Pen, Mum has a firm focus on writing profitable, sustainable business underpinned by a robust underwriting discipline and is just as focused on investment in great people, where support, career development and internal progression are to the fore.

“We couldn’t be more delighted at the prospect of bringing Mum into the Pen Underwriting family and extend a very warm welcome to Charles and his team.”