Specialty insurance company Ryan Specialty has agreed to acquire Castel Underwriting Agencies, currently owned by Arch Financial Holdings (UK) and minority shareholders.
Headquartered in London, England, Castel is an MGU platform. The company also has offices in the Netherlands and Belgium.
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Castel Underwriting Agencies is made up of 13 different MGUs, each with expertise in a specific product niche.
Its diverse portfolio includes renewable energy, transactional liability, marine and construction, along with other specialty business lines.
The addition of Castel to its portfolio will help Ryan Specialty expand its existing MGU portfolio in the UK and European regions.
For the 12 months that ended on 30 November 2023, Castel generated approximately £35m ($44m) of operating revenue.
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By GlobalDataThe terms of the transaction were not disclosed by the two companies.
The acquisition is currently subject to regulatory approvals and customary closing conditions. It is expected to close in the first half of 2024.
BofA Securities served as the exclusive financial advisor to Arch.
Ryan Specialty’s founder, chairman and CEO Patrick Ryan, commented on the acquisition strategy: “Expanding our total addressable market both organically and inorganically remains a top priority for Ryan Specialty.
“In 2023, we added capabilities to each of our specialties and acquired companies with revenue in excess of $140m, inclusive of Castel.”
He further added: “Bringing Castel into Ryan Specialty expands our UK and European footprint in delegated authority, and the lines of business underwritten by these MGUs are both complementary and accretive to our firm.
“We are very much looking forward to further expanding with this very talented team.”
Castel CEO Mark Birrell said: “Ryan Specialty shares the same philosophy, and we could not be more excited to be joining forces with this great firm.
“I am confident that as part of Ryan Specialty we are positioning our MGUs for continued success and our underwriters to further accelerate their careers.”
The deal is expected to close during the first half of next year.
