MGA Volante Obtains US$900M in Capacity to Support 9 Global Underwriting Teams

Volante Global Ltd., the new international managing general agent (MGA) platform, has successfully secured a US$900 million gross premium, multi-class, multi-territory “A+” capacity treaty agreement.

The capacity will support nine new underwriting teams which will work across seven classes of business and operate in North America, Europe and Africa.

The business lines include: property, general liability, space, international motor, facultative P/C, leisure & sport, financial institutions, North America auto and professional indemnity. The teams are scheduled to launch on the Volante platform in Q3 and Q4 2018.

Led by Talbir Bains, founder and CEO of Volante, the group originally secured equity investment in October 2017 from Nephila Capital, which is an insurance-linked securities and reinsurance-linked investments manager. In December 2017, Volante announced its plan to launch in early 2018.

The $900 million capacity was provided by a panel of three A.M. Best and Standard & Poor’s “A+” rated insurers. The single agreement is secured on a multi-year, long-term-agreement (LTA) basis with zero arbitrage fixed commissions. Volante said its earnings will be fully contingent on profit commission, which is in turn a calculation based on carrier performance over the period of the agreement.

The agreement between Volante and the carrier panel is underpinned by Volante’s “pioneering technology platform which ensures full transparency and connectivity,” said the company, explaining that the system’s web-based portals provide the three capacity-providing carriers with real-time management information across all seen, quoted and bound business spanning policies, claims, risk management and rating adequacy.

The transaction delivers “a back-to-basics approach to the MGA-carrier relationship,” said Bains.

“We have embedded within the commission structure of this deal a contractual alignment which necessitates that the underwriting profitability of our carriers is Volante’s primary focus in all aspects of the underwriting journey. This is about building a partnership predicated on complete alignment to the combined operating result of our capacity providers,” he added.

“Our commitment is to become an extension of their own business, operating with all of the guidelines, processes and controls you would expect from a market-leading insurance company – and with our superior technology advantage at the origin of the business, delivering margin optimization through both operational efficiency and enhanced data and pricing analytics,” Bains affirmed.

The capacity transaction was completed over a five-month period with the support of the Global Portfolio Broking team within Aon’s Reinsurance Solutions business, led by UK CEO Nick Frankland, Robert Sharp, Glyn Ridpath, Andrew Matson and Vijay Mavani.

“We are delighted to have played a role in building this unique partnership structure between Volante and its providers, which we believe sets a new standard for the multi-class MGA model,” said Frankland. “By combining world-class capacity, leading sector expertise and technology that enables business to be analyzed and transacted quickly and efficiently, we feel that Volante is well-positioned to be a huge success.”

There are two underwriting teams already secured on the Volante platform with “AA+” capacity on a multi-year agreement: Bridge Underwriting, a Stockholm-based specialist underwriting team operating across multiple P/C lines, and Edison Motor, a London market-based team offering specialist commercial motor insurance products in the UK. A third team, Horizon, which is a treaty reinsurance team based in Zurich, is scheduled to begin underwriting on the Volante platform in January 2019.

Source: Volante Global

Related: