Aurous MGA launches to connect risk with multiple forms of capital

Aurous Risk Partners has been launched as a new reinsurance focused managing general agency (MGA) that aims to maximise efficiencies and premium return, by connecting risks with the most suitable capital, including alternative or capital markets sources.

Launched by Carl Beardmore, previously the Group CEO of BMS Group (Minova) and also instrumental in the design and launch of Pioneer Underwriting, Aurous Risk Partners aims to capitalise on trends in the market to provide a more efficient way to transact in reinsurance to its clients.

The firm wants to make the reinsurance transaction process more efficient, by adding transparency, reducing costs and making it simpler.

Aurous Risk Partners is a joint venture between OneAdvent, an MGA incubator platform, insurtech investor and innovation hub, alongside Aurous’ management team.

The firm aims to create a novel intermediary, “focused on creating more cost effective and client benefiting methods of capturing, delivering and processing reinsurance transactions.”

For the first year Aurous will concentrate on building out a business in international specialty reinsurance lines, including energy, property, aviation, and political violence/terrorism risks.

Beardmore, CEO of Aurous, believes that the reinsurance sector requires significant changes to the way it transacts.

He recognises that abundant capital has driven a reduction in the amount of premium per risk entering the distribution chain and recognises that this is not going to change.

Compounding the problem, Beardmore says that the costly and often inefficient nature of insurance transactions is driving unsustainable returns for many in the business, hence the focus on an efficient way to match original sources of reinsurance risk with the most appropriate capital at Aurous.

“‘Change is no longer an option – it’s a necessity! Our novel independent MGA will be differentiated through preferred access to desirable premium, unique data insights, and the ease by which we transact business,” Beardmore explained.

Continuing, “Underpinning these capabilities will be our evolving reservoir of multifaceted capacity embracing all forms of capital including alternative capital.

“Other’s talk about providing professionalism, world class underwriting, and solutions to client’s needs. These are no longer differentiators – they’re entry tickets to the party – in effect, representing more of the same.

“We believe that the vision, experience and relationships of the team at Aurous, aligned with the support of OneAdvent, creates a compelling proposition driven by the vision to make transacting reinsurance easier, more effective, and less costly.”

Aurous began its operations in September and has hired Neil Templeman, formerly of EY, as its Chief Financial Officer.

Templeman is experienced in the set up of MGA’s, as well as in aligning the right type of capacity around reinsurance underwriters

He commented, “We aim to provide our underwriters with a complimentary pool of capacity constructed from all forms of available capital. We want to ensure the best matches are made between risk and capacity. Matches that are truly in the client’s best interests.”

David Hill, Managing Director of OneAdvent, also said, “We are excited about the launch of Aurous. The sector needs to challenge the way in which premium is acquired and transacted to ensure adequate returns can be made from prevailing premiums, while at the same time enhancing client service. Carl and Neil have the proven track record and vision to make this happen.”

Aurous targets a January 2019 start to its underwriting and expects to be announcing a number of key underwriting appointments in the near future.

By leveraging alternative sources of capacity, the capital markets and ILS funds, MGA’s such as Aurous are promising to more directly connect original sources of risk with the most efficient capacity possible, providing a route through which capital providers can acces better margin underwriting business in a low-friction manner.