Ardonagh Group, the largest independent insurance broking, underwriting, servicing and management company in the UK, has now added insurance-linked securities (ILS) servicing and management to its range of offerings, as its managing general agent Geo Underwriting has acquired insurance manager Robus Group.
Management, fiduciary and financial advisory group Robus provides a range of services, across insurance management, protected cell company and captive management, actuarial and insurance-linked securities (ILS) services.
The company has operations in Guernsey, Gibraltar and Malta, all domiciles with regulatory regimes that support ILS and collateralised reinsurance activity, with Guernsey being the one that is particularly active in the space.
Robus has been acquired by Geo and will sit under its Geo Specialty Group Holdings entity.
Robus will continue to operate as an independent company, under the leadership of CEO Richard Le Tocq.
This is the Ardonagh model, as the group has acquired numerous insurance broking, underwriting, servicing and management companies over the years, with each operating as independent entities and brands, while benefiting from synergies within the organisation.
Robus is the first operation to be acquired by Ardonagh that has specific insurance-linked securities (ILS) capabilities.
Robus establishes, manages and provides segregated or protected cells for use in ILS and collateralised reinsurance transactions, providing transformer solutions to enable third-party capital and insurance risks to meet.
The company can provide cells from its own protected cell company, or even establish a cell company specifically for a sponsor or ILS fund manager, which could then be used for repeated ILS transactions.
Geo CEO Derek Coles commented on the acquisition of Robus, “Robus is a small but powerful addition to the group and joins at a significant time. Hardening rates are leading to an increase in interest from MGAs, brokers and insurance industry investors to set up their own insurance carriers, and from both corporate firms and intermediaries looking to set up their own captives. The addition of Robus broadens the suite of our specialist capabilities and expertise available to clients. The team’s focus on collaboration, trust and innovation – seeking to be true partners of their clients – also makes them an exciting cultural fit for us.”
Richard Le Tocq, CEO of Robus, added, “Of utmost importance to us throughout this process was finding a home that would value and support our independence. With Geo Specialty we find ourselves in good company. We have a proud history of developing innovative insurance solutions to meet the changes in our clients’ needs within a variety of jurisdictions and are pleased to be part of a larger Group with a track record in investing for growth.”
Mike Leonard, outgoing Chairman of Robus Group and a shareholder in the firm also said, “My fellow shareholders and I are delighted Robus is moving into strong and welcoming hands for the next chapter in its strategic development. We cannot, of course, forget the legacy and vision of the late Chris Le Conte in shaping the foundations of Robus. Building on these roots, Richard and his team have ensured the business has developed from strength to strength over recent years and we wish all of the Robus team an exciting future with their new colleagues.”