Canopius buys Equity’s 25% stake in Arista

Canopius has bought fellow Lloyd’s insurer Equity Red Star’s 25% stake in commercial underwriting agency Arista.

The acquisition takes Canopius’s stake in Arista to 75%, with the remaining 25% owned by Arista’s management.

As a result of the deal, Canopius has replaced Equity as the capacity provider for Arista’s commercial motor book.

Canopius has also taken over the underwriting of Equity’s household and personal accident books of business. Together with Arista’s motor account, these portfolios comprise around £50m of annualised gross written premiums.

Equity revealed in May that it was considering selling its 25% stake in Arista when it announced its new strategic direction.

Canopius had expressed an interest in buying the stake.

Canopius executive chairman Michael Watson said: “This series of transactions provides a substantial boost to our UK retail strategic business unit, increasing its annualised premiums by approximately 20%. 

“Arista is a profitable MGA and we are pleased to increase our stake and provide further underwriting support for its product range. Household and personal accident are core lines for Canopius’s UK retail strategic business unit and the acquisition of Equity’s profitable portfolios supports our strategy for growth in this part of our operations.”

Arista chief executive Charles Earle (pictured) added: “We are clearly pleased with today’s deal. Canopius is a strong, ambitious organisation with whom we already have a good relationship. I want to thank Canopius for their vote of confidence in Arista and in our business model.

“I would also like to thank Equity, and all of the Equity staff, who have provided support to Arista over the last seven years. We have all enjoyed working with them and we wish Equity well.

“Our staff and our brokers can look forward confidently in their relationships with Arista. Our underwriting and investment support, and our partnership with Canopius, are strengthened. With the continuing support of our brokers, we will go on growing Arista’s capabilities for the benefit of all our stakeholders.”