Sunday, April 21, 2024

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SRS agrees Robus acquisition from Ardonagh Group

Strategic Risk Solutions has acquired captive and insurance manager Robus from the Ardonagh Group, subject to regulatory approval, strengthening its presence in Guernsey and adding Gibraltar to its list of domicile options.

SRS’ acquisition of Robus adds a significant office in Gibraltar, which manages captives, motor insurers, protected cell companies and other commercial (re)insurers.

Brady Young, CEO of SRS, told Captive Intelligence: “The acquisition supports our long-term commitment to Europe and underlines the excitement we feel about growth opportunities for the next 10 years.

“The organic growth of our European business over the last five years has been hugely encouraging. Our recent expansion into the MGA space with SRS Altitude and now the acquisition of Robus will take us to the next level of our development on the continent.

Ardonagh acquired Robus in December 2020 through Geo Underwriting, but the acquisitive broking group has since struggled to expand its presence in the captive sector.

Captive Intelligence understands Ardonagh had previously explored acquiring SRS before the latter’s ultimate investment from private equity firm Integrum last year.

Ardonagh, through Robus, had also been interested in acquiring Allied Risk Management in Dublin, Ireland, which was bought by Artex in May 2023.

Steve Quinn, Executive Chairman, Robus Group said: “Joining a business that is renowned for its specialist insurance management solutions is the natural next step in the development of our business.

“Robus has been on a remarkable journey over the past few years with Ardonagh, which will remain an important trading partner. We’re excited to now work with SRS, a business that shares our same high standards of service, as we continue to deliver some of the best possible captive management solutions available on the market.”

Gibraltar’s captive sector is currently anticipating confirmation of its much-trailed “dual captive regime” which could breathe new life into the domicile in an increasingly competitive European landscape.

Speaking to Captive Intelligence Peter Child, CEO of SRS Europe, said he was excited to further investigate the opportunities in Gibraltar.

“We already provide insurance management services to commercial insurers within the EU, so expanding that commercial insurance practice to include Gib will bring scale that we can immediately leverage,” said Child.

“For instance, SRS already employs a team of actuaries that provide pricing, reserving and capital modelling services to clients in a Solvency II environment.

“I’m sure those skills will be transferable to the Gib client base, and there will be other skills that will be transferable in the other direction.”

Robus’ Gibraltar office is led by Paul Cole, managing director for Gibraltar and group chief operations officer.

In Guernsey, Robus has more than 20 captives, general insurers and PCCs under management by a team led by Jamie Polson, managing director for Guernsey and group finance officer.

“In terms of Guernsey, the addition takes us to a size that will provide greater resilience and flexibility when it comes to applying our resources to an expanded client base,” Child added.

“That client base will be significantly diversified and will enable us to promote specific centres of excellence for different types of licensed insurers: captives; commercial insurers; commercial reinsurers and ILS/SPI vehicles all of which have fundamentally different needs.”