Medical & Commercial International completes management buyout from Castel

17 September 2020

17 September 2020 – Medical & Commercial International (MCI), a division of Castel Underwriting Agencies Ltd (Castel), has today completed a management buyout from the club-style MGA formation platform.

MCI, a specialised casualty underwriting business, launched on the Castel MGA platform in 2015. Today it writes over $50m of annual gross written premium across its main classes: Life Sciences (including clinical trials), Health Sciences (including medical malpractice) and International General Liability.  Following completion of the transaction, MCI will be majority owned and controlled by its management team, led by chief executive Philip Trafford.

Castel’s MGA model provides the opportunity for its underwriting businesses to become independent through a mutually agreed exit strategy after four to seven years. 

 

Mark Birrell, chief executive of Castel said:" Phil and the team have built a strong, sustainable business. Castel has a singular focus on supporting its underwriting businesses to achieve maturity and flourish as MGAs. The growth MCI has achieved since launching on our platform is testament to their market knowledge and robust plan. We wish MCI every success on this next phase of their development.”

Philip Trafford, chief executive of MCI, commented: “MCI’s specialised and disciplined underwriting approach has enabled a successful business to be built over the course of the last 5 years.  Castel’s support incubating MCI in these formative years has been an important factor in preparing the business for this moment.  We are very much looking forward to the next exciting phase of MCI’s journey”

ENDS

For further information, please contact:
 

Full Circle Corporate Communications
Alex Wise

Mobile +44 (0) 7710 665615
Tel:  +44 (0)20 7265 7887 
Email awise@fullcirclecomms.co.uk

Notes to editors
 

Castel Underwriting Agencies Limited, part of Arch Insurance International, is an independent trading company and managing general agent (MGA) and club-style MGA formation platform focused on achieving success and driving innovation through collaboration. It provides experienced and entrepreneurial underwriters with stable capacity and a fast-track route to creating their own businesses. Castel is authorised and regulated by the Financial Conduct Authority. Learn more about Castel at www.castelmga.com.

Castel’s underwriting cells include:
 

  • Specialty Centre of Excellence which supports talented and entrepreneurial individual underwriters who have smaller books of niche business including bloodstock risks, political risk, marine and global property facultative reinsurance.
  • Construction and Engineering Centre of Excellence which supports construction and Inherent defect insurance.
  • Warranty and Indemnity Centre of Excellence which supports Western European M&A transactions and tax risk insurance for liabilities in Europe.
  • Marine Centre of Excellence which supports marine cargo, hull and liability classes of business in the UK and continental Europe with offices in London and Rotterdam.
  • Nirvana Risk Partners which underwrites media, technology and cyber liability risks for small and large enterprises on a global basis.
  • Vecta Risk Partners which underwrites specialist group and individual accident & health, travel and lifestyle coverages distributed through brokers and affinity e-trading platforms.
  • Verve Risk Partners which underwrites U.S. professional and management liability risks, focusing on insurance companies and captives as well as insurance agents and brokers.
  • Yachtpod Risk Partners which underwrites specialist coverages including hull and machinery, increased value, war, medical expenses, mortgagee’s interest and loss of charter hire risks for superyacht owners, captains, and managers on a worldwide basis.

About Arch Insurance International

Arch Insurance International is part of Arch Capital Group Ltd. and includes Arch Insurance UK and the P&C insurance operations of Arch Insurance (EU) dac, as well as Arch’s insurance operations in Europe, Bermuda and Australia.

About Arch Capital Group Ltd.

Arch Capital Group Ltd., a Bermuda-based company with approximately $13.10 billion in capital at March 31, 2020, provides insurance, reinsurance and mortgage insurance on a worldwide basis through its wholly owned subsidiaries.

Cautionary Note Regarding Forward-looking Statements

The Private Securities Litigation Reform Act of 1995 (“PSLRA”) provides a “safe harbor” for forward-looking statements. This release or any other written or oral statements made by or on behalf of Arch Capital Group Ltd. and its subsidiaries may include forward−looking statements, which reflect our current views with respect to future events and financial performance. All statements other than statements of historical fact included in or incorporated by reference in this release are forward-looking statements. Forward-looking statements, for purposes of the PSLRA or otherwise, can generally be identified by the use of forward-looking terminology such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe” or “continue” and similar statements of a future or forward-looking nature or their negative or variations or similar terminology.

Forward−looking statements involve our current assessment of risks and uncertainties. Actual events and results may differ materially from those expressed or implied in these statements. A non-exclusive list of the important factors that could cause actual results to differ materially from those in such forward-looking statements includes the following: adverse general economic and market conditions; increased competition; pricing and policy term trends; fluctuations in the actions of rating agencies and our ability to maintain and improve our ratings; investment performance; the loss of key personnel; the adequacy of our loss reserves, severity and/or frequency of losses, greater than expected loss ratios and adverse development on claim and/or claim expense liabilities; greater frequency or severity of unpredictable natural and man-made catastrophic events; the effect of contagious diseases (including COVID-19); the impact of acts of terrorism and acts of war; changes in regulations and/or tax laws in the United States or elsewhere; our ability to successfully integrate, establish and maintain operating procedures as well as integrate the businesses we have acquired or may acquire into the existing operations; changes in accounting principles or policies; material differences between actual and expected assessments for guaranty funds and mandatory pooling arrangements; availability and cost to us of reinsurance to manage our gross and net exposures; the failure of others to meet their obligations to us;  changes in the method for determining the London Inter-bank Offered Rate (“LIBOR”) and the potential replacement of LIBOR and other factors identified in our filings with the U.S. Securities and Exchange Commission. The foregoing review of important factors should not be construed as exhaustive and should be read in conjunction with other cautionary statements that are included herein or elsewhere. All subsequent written and oral forward−looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these cautionary statements. We undertake no obligation to publicly update or revise any forward−looking statement, whether as a result of new information, future events or otherwise.

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