Consolidator could buy syndicate to convert to an MGA, says Nathan
Towergate could revive its plans for a presence in Lloyd’s as it hits the acquisition trail once more, with a £100m warchest from private equity investor Advent.
Towergate Underwriting chief executive Clive Nathan outlined plans to target niche, specialist businesses, inside or outside Lloyd’s.
He told Insurance Times that the consolidator had no current plans to start up a Lloyd’s box – a proposition mooted, then abandoned, last year.
But he said: “I would be interested in a Lloyd’s syndicate or any other niche underwriting business that we could buy – either as an MGA [managing general agent] or to turn into an MGA.”
He emphasised that Towergate has no plans to become a capacity provider, saying: “If a Lloyd’s syndicate is writing business, we can take it, put it into run-off and then move the capacity into an insurer.”
He added: “The alternative would be that an insurer decides they no longer want to underwrite a book of business, but they are happy for us to do it. In which case, we would do it on their behalf but cede capacity back to them.”
Nathan was speaking after Towergate group chief executive Andy Homer gave a lecture in the Old Library at Lloyd’s about the business advantages of being both a chartered insurer and a chartered broker.
Homer revealed that Towergate Underwriting would not be joining the Managing General Agents’ Association, which was set up last year to act as a trade body for MGAs.
Instead, Towergate Underwriting would concentrate on its membership of Biba and the Chartered Insurance Institute (CII).
Towergate Partnership spent £475,000 last year on CII training.