International brokerage Howden Group Holdings has completed its first underwriting capital investment, with an $84 million investment in support of DUAL Group’s reinsurance arm, Tamesis DUAL Ltd.
Capital was provided by Howden and a third party investor and the additional capacity has been in place since the start of January.
DUAL, which is part of Howden Group, is the world’s largest international MGA and also the largest international coverholder at the specialist Lloyd’s of London insurance and reinsurance marketplace.
“This deal represents our first underwriting capital commitment in support of DUAL and I’m delighted to welcome a third party investor to sit alongside the group for this transaction. We will join Tamesis’ existing partners and enhance their already excellent position in the reinsurance market,” said David Howden, Chief Executive Officer (CEO) of Howden Group.
Richard Clapham, CEO of DUAL, noted: “It’s fantastic that Tamesis are to be the first to benefit from this new capital, which is testimony to their underwriting acumen and their exemplary track record in underwriting retrocessional Excess of Loss. This new binder, supporting this class, gives Tamesis increased capacity in an area which is seeing significantly improved pricing.”
Howden added: “The transaction represents what we can now do for our clients when we harness together deep expertise from across the Group – in this instance Howden Reinsurance, Howden Capital Markets, Tamesis, and DUAL – with the strength of our balance sheet. It demonstrates not only our ability to structure innovative underwriting capital solutions but also to bring in the highest quality third parties to support them.
“Our investment in talent, as demonstrated by our recent appointment of Paul Kneafsey in his role as Group Capital Underwriting Director, is also crucial as we begin to deploy this capital, starting with supporting Tamesis’ 2021 growth plans. Our ambition is to consistently show the value we bring beyond the transaction itself, as a true differentiator and as a client champion.”
The establishment of its capacity vehicle with capital of $84 million to support treaty reinsurance MGA, Tamesis, follows Howden’s entry into a long-term capacity partnership with Lloyd’s Syndicate Ki.