Folgate Insurance Co. Ltd. has received approval from the UK’s Prudential Regulation Authority (PRA) to start writing primary insurance, as well as reinsurance.
All business written through Folgate will be underwritten by managing general agent APC Underwriting – in a similar setup to a Lloyd’s syndicate. “This means that all business written through Folgate will be underwritten by APC Underwriting. The aim is for Folgate to become a standalone entity in three years,” said a company representative in an emailed statement.
APC Underwriting acquired Folgate in 2014 after the UK insurer was put into run-off by its former owner, Towergate, in 2002. Folgate was originally set up in 1877.
“We believe this is the first time a UK insurer has been set up to operate like a Lloyd’s syndicate, by using APC as a managing agent,” said APC Chief Executive Officer Brian Russell.
“Folgate’s revival is good news for the market. This revolutionary new structure will give brokers access to a credible UK-domiciled insurer and keep the Folgate brand alive,” he added. All APC business written will be via brokers in the UK.
Folgate will be led by Russell, who has a 40-year track record in the industry and has been in charge of APC Underwriting since its inception 25 years ago.
Folgate was granted its license on June 6, and expects to start writing small to medium-sized enterprise (SME) business in the UK and Europe in Jan. 2019.
Over the next two years APC Underwriting will transition its staff, operations and the majority of its business lines over to the Folgate entity.
Ian Russell, APC’s chief underwriting officer, Jon Bates, APC’s chief operating officer and Zoe Spicer, chief financial officer for APC, have joined the Folgate executive board.
“It has always been an ambition to move from a managing general agent (MGA) into an insurer,” Russell said. “Folgate has a strong track record as an established insurer with traditional values. I look forward to driving the Folgate business forward, working with a very talented team, whilst maintaining the values established in Folgate’s 138-year old history.”
In its previous history, Folgate wrote major personal and commercial lines, as well as business generated by regional brokers. It is best known for underwriting the Saga and Motor Association accounts.
Source: Folgate Insurance Co. Ltd.
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