Arista’s GWP almost doubles as operating loss narrows

Commercial lines managing general agent (MGA) Arista wrote £60m in gross premiums in 2009, up from £36m the previous year, which the firm said puts it in the top five provincially-focused MGAs.

Arista’s operating loss narrowed to £1.5m in 2009, the company’s third year of operation, from £3.8m in 2008, and the company made AN EBITDA profit during the second half of the year.

“We are very pleased with the achievements of 2009, particularly the very strong growth and the move into profitability during our third year of trading,” said Charles Earle, Arista’s chief executive, in a statement. “Obviously it would have been preferable to record a profit for the whole of 2009 but importantly the figures demonstrate not only significant improvement on 2008, but the transition from start-up to established and credible alternative to major established commercial insurers.”

He added: “It is also worth pointing out that it is no mean feat to go from a standing start to profit inside three years, while contending with a prolonged soft market and what is arguably the biggest economic downturn since the great depression.”

Arista, established in 2007, is backed by Lloyd’s insurer Canopius and Equity Insurance Group, which invest in the MGA and also provide it with underwriting capacity. Arista said both backers are happy with Arista’s progress and that it has been achieved without sacrificing underwriting discipline.

Arista’s 2009 turnover increased to £7.9m from £4.3m in 2008, and expenses as a percentage of gross written premiums fell to 15.7% from 22.6%. Managed broker relationships grew to 330 from 230 in 2008.