Sunday, April 21, 2024

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Davies gets approval for European broking arm, set for Lloyd’s authorisation

Davies has received regulatory approval for its European broking operations which will bring its services to companies across the European Union.

Davies Broking Europe SRL (DBE) has received approval from Belgium’s Financial Services and Markets Authority (FSMA) and is set to become an authorised Lloyd’s broker shortly. 

The operation will be based in Brussels and has been designed to partner with brokers in the European Economic Area (EEA).

Its UK branch will also allow existing and future UK broker clients the ability to expand their business into Europe via a warehousing solution.

“DBE extends our UK broker incubation platform for clients aiming to grow and establish infrastructure in Europe through Brussels,” said Matt Lane, CEO of Intermediary & Market Services and a director of DBE.

“Longer term, our aim is to work with clients who are keen to achieve their own authorisation in Europe through the fast-growing Brussels insurance and reinsurance centre.”

In May, Davies strengthened its captive presence in the region with the acquisition of the Guernsey insurance management services portfolio of Ortac Underwriting Agency.

Davies has made several captive management acquisitions over the past five years, including US assets of USA Risk Group in 2018 and Bermuda’s Citadel Risk in 2022.

DBE will provide an alternative for handling Lloyd’s Managing Agents’ internal broker and service company Bureau processing related to (LIC).

Davies acquired Lloyd’s managing agent Asta last year, one of the agents leading development of the Lloyd’s Captive Syndicate project.

The company will act as a partner to facilitate EEA presence for both Lloyd’s and non-Lloyd’s business, by serving as the EU placing broker.

DBE will also operate as an outsourced service provider either under DBE’s EEA authorisation or via clients’ own permissions, which will allow DBE to offer support for back-office operations.

It will also provide Non-Lloyd’s Bureau processing for London market carriers underwriting EEA business.

“This is a significant step in Davies’ ambitions,” Steven Goate, director of DBE at Davies.

“We have made no secret of our aim to open new markets for our established and future clients to enable entrepreneurial businesses to deliver innovative solutions in an ever-changing landscape.

“At Davies we are committed to be where our clients operate, and the opening of DBE will further our ambitions.

“Wherever our clients are in the world we will be alongside them to partner them in delivering their development and business growth.”