London-based MGA announces £420m capacity deal with QBE

MGA Pen Underwriting has signed a new five-year capacity deal with QBE worth over £400m.

The MGA said its renewed agreements with QBE focus on the niche areas of public authority risks, as well as risks pertaining to the hazardous goods and environmental industries.

The agreements will see QBE provide capacity for £420m in premium during the multiyear term.

The deal will also take the two firms’ strategic relationship beyond 25 years in terms of continuous capacity provision.

Anna Bennett, director of underwriting for UK casualty at QBE Europe, said: “We are delighted to be further extending our long-term strategic partnership with Pen and supporting their expertise in delivering significant value, continuity and stability to sectors of fundamental societal and economic importance.

“We are grateful for our Bristol and London-based teams who have been pivotal in strengthening and renewing these relationships and we value Pen’s commitment to driving excellent portfolio performance, while managing risk in some of the most challenging areas.

“We look forward to continuing our collaborative commitment to these niche risk sectors and growing and expanding together over the years to come.”

Specialisms

The first area of core specialism underpinned by the new agreement is Pen’s public sector business RMP in the UK, with QBE supporting property and casualty, financial lines and motor fleet risks, including police authorities.

QBE’s capacity will also support Pen’s specialism that caters for the hazardous, environmental and bulk liquid industries, with support being given to property and casualty risks, plus excess-of-loss in the UK and Ireland.

Adam Shefras, managing director of hazardous goods and environmental industries at Pen, said: “It’s fantastic to be taking our partnership with QBE past the 25-year mark with this new five-year capacity deal in support of what is a highly specialist and changing market.

“Due to the nature of our clients, we have to be prepared to deal with catastrophic losses and our insurer partners place their trust in us to work closely with clients and industry bodies to maximise the risk mitigation measures that enable us to manage this risk and grow together sustainably.”