Ryan Specialty has signed a definitive agreement to acquire Castel Underwriting Agencies Limited, a Managing General Underwriting (MGU) platform, from Arch Financial Holdings (UK) Limited and minority shareholders.
Headquartered in London and founded in 2014, Castel consists of thirteen MGUs, each having expertise in a specific product niche. The firm has additional offices in the Netherlands and Belgium.
Ryan Specialty noted that the breadth of Castel’s offerings and its geographic concentration in the UK and Europe add “significant capabilities” to its managing general underwriter portfolio.
The acquisition is expected to close during the first half of 2024, subject to regulatory approvals and customary closing conditions. Terms of the transaction were not disclosed.
Commenting on the acquisition, Patrick G. Ryan, Founder, Chairman & CEO of Ryan Specialty, said, “Castel is a first-class organization with a history of exceptional performance on all metrics, including underwriting profit and growth.
“Bringing Castel into Ryan Specialty expands our UK and European footprint in delegated authority, and the lines of business underwritten by these MGUs are both complementary and accretive to our firm. We are very much looking forward to further expanding with this very talented team.”
Miles Wuller, President and CEO of Ryan Specialty Underwriting Managers, added, “Mark and the Castel team have built a remarkable business. Many of Castel’s MGUs are recognized as market leaders in their distinctive niches, attracting support from some of the highest-quality capital in the industry.
“Furthermore, the Castel team has a proven approach to attracting top talent to support de novo MGU formation, which will be invaluable as we seek further international expansion. We are thrilled to welcome the Castel team to Ryan Specialty and are excited by the prospect of what we can achieve together.”
Mark Birrell, CEO of Castel, said, “We have built Castel around attracting and retaining the industry’s best underwriters, and providing those underwriters with tools and resources to reach extraordinary levels of performance.
“Ryan Specialty shares the same philosophy, and we could not be more excited to be joining forces with this great firm. I am confident that as part of Ryan Specialty we are positioning our MGUs for continued success and our underwriters to further accelerate their careers.”
“Hugh Sturgess, President and CEO of Arch Insurance International, observed, “Under Mark’s leadership, Castel has excelled in a competitive and dynamic market. Ryan Specialty is an ideal fit for Castel as they build into the future. We look forward to continuing our successful relationship with Castel and Ryan Specialty.”
BofA Securities served as the exclusive financial advisor to Arch.
