Gibraltar insurer Tradewise gets £20m capital boost

Gibraltar Insurer Tradewise Insurance Group has received a £20m capital injection through an investment by Harwood Private Equity.

The insurer, which writes in the UK and other European countries from its Gibraltar base, said it will use the fresh funding to “reduce the costly burden of expensive co-insurance and quota share arrangements”.

Tradewise added that the new investment, which is subject to regulatory approval in Gibraltar and the UK, will also boost its Solvency II coverage ratio to around 180% and give the company capacity to “explore the numerous opportunities that we continue to receive from our loyal network of brokers”.

Tradewise had a Solvency II coverage ratio of 101.8% at the end of 2016, according to its Solvency and Financial Condition Report, meaning that it just complied with Solvency II’s solvency capital requirement (SCR).

At the time, Tradewise chief executive James Humphreys told Insurance Times that the company was planning to raise more capital to bolster its solvency position.

Commenting on the new £20m investment from Harwood, Humphreys said: “We are delighted to have found the right investment partners for our organisation. With this investment we can continue to focus on our core objective of building profit from niche insurance sectors within the motor insurance markets and wherever else profitability is identified.”

Harwood Private Equity managing partner Christopher Mills will join the boards of the relevant Tradewise holding companies as part of the investment.

Harwood Private Equity invests across a range of sectors in the UK.