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Volante secures $900mn capacity deal for new underwriting teams

14th June 2018 - Author: Matt Sheehan

Volante Global Limited, a multi-class international managing general agent (MGA) platform, has secured a $900 million treaty agreement with three A+ rated global carriers to provide capacity for nine new underwriting teams.

Volante Global logoThe new teams are scheduled to launch on the Volante platform in the second half of 2018, and will work across seven distinct classes of business, operating across North America, Europe, and Africa.

The single agreement has been secured on a multi-year long-term agreement (LTA) basis with zero arbitrage fixed commissions, and aims to ensure a long-term partnership and strategic alignment, with a structure designed to optimise the combined operating results of the carriers.

Volante’s technology platform will also provide each carrier with real-time management information across all seen, quoted and bound business for policies, claims, risk management and rating adequacy via the system’s web-based portals.

Talbir Bains, Founder and Chief Executive Officer (CEO) at Volante, commented on the transaction: “This single capacity treaty supported by a panel of three global carriers, supporting nine underwriting teams across an expansive range of classes and territories, is key to the objectives that we are committed to delivering at Volante – group culture, underwriting culture and an accretive insurance offering underpinned and enabled by leading-edge technology.

“What the transaction delivers in our view is a back-to-basics approach to the MGA-Carrier relationship. We have embedded within the commission structure of this deal a contractual alignment which necessitates that the underwriting profitability of our carriers is Volante’s primary focus in all aspects of the underwriting journey.

“This is about building a partnership predicated on complete alignment to the combined operating result of our capacity providers. Our commitment is to become an extension of their own business, operating with all of the guidelines, processes and controls you would expect from a market-leading insurance company.”

The Global Portfolio Broking team within Aon’s Reinsurance Solutions business acted as the reinsurance intermediary for the transaction, and was led by Aon’s UK CEO Nick Frankland.

Frankland said: “We are delighted to have played a role in building this unique partnership structure between Volante and its providers, which we believe sets a new standard for the multi class MGA model. By combining world-class capacity, leading sector expertise, and technology that enables business to be analysed and transacted quickly and efficiently, we feel that Volante is wellpositioned to be a huge success.”

Volante’s platform already hosts the underwriting teams of Bridge Underwriting, a P&C MGA,  and Edison Motor, a commercial motor MGA, while Horizon’s Treaty Reinsurance team is scheduled to commence underwriting on the platform in January 2019.

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