UK-based specialty managing general agent (MGA) Nexus Group has acquired Altitude Risk Partners, an operator in the London aviation insurance market, from Castel Underwriting Agencies for an undisclosed price.
Altitude Risk Partners, which is an aerospace MGA founded in 2014, will become a trading division of Nexus Underwriting following the completion of the asset purchase deal.
The aerospace MGA will continue to operate as normal with its current underwriting team to join Nexus and move into the latter’s headquarters in London.
Altitude Risk Partners is engaged in underwriting a diverse portfolio in seven lines of aerospace insurance in over 130 territories. The company’s gross written premium (GWP) for the current year is estimated to be more than $80m.
Castel Underwriting Agencies is expected to work together with Nexus to enable a seamless transition for the business.
Castel CEO Mark Birrell said: “This is an important milestone in the development of Castel with Altitude being both the first of the 13 underwriting cells to launch on our formation platform and the first to exit.
“The deal clearly demonstrates that our business model of supporting entrepreneurial underwriters in launching and building successful businesses is working. This proven structure enables us to continue to identify and develop opportunities to bring other entrepreneurial teams to market.”
For Nexus, the closing of the deal represents its tenth acquisition in the space of three years and its third till date in 2018. The specialty MGA is made up of 12 acquisitions and two joint ventures as of now.
Nexus founder and group CEO Colin Thompson said: “Now is an excellent time for us to be buying an Aerospace MGA, with capacity being withdrawn, rates hardening, improving safety standards and increased focus on underwriting profitability across the market.
“As a Group, we continue to target three acquisitions per annum, including transformational deals such as this which enrich our business with new expertise and solutions. We have a busy pipeline and will continue to proactively look for new opportunities that fit into our M&A model.”
Last week, Nexus Group wrapped up its acquisition of Huntington Underwriting, a structured solutions underwriting manager, from Singapore-based insurance services firm Huntington Group.