AM Best gives Navigators Brexit inspired Belgian expansion seal of approval

AM Best’s ratings of US-based international specialty insurer Navigators and its subsidiaries remain unchanged following the group’s recently announced agreement to buy Antwerp, Belgium-based Assurances Continentales – Continentale Verzekeringen (ASCO) and Bracht, Deckers & Mackelbert (BDM). ASCO is a specialty insurance company underwriting marine and P&C insurance. BDM is an insurance underwriting agency that offers risk coverages in niche markets on behalf of ASCO and a number of major international insurers. As part of the $35m cash deal, Navigators will also acquire all the shares of Canal Re, the Luxembourg-based reinsurer that is a wholly-owned subsidiary of ASCO. Navigators, which offers a wider range of specialty covers but focuses on marine and property, wrote $1.6bn of net premiums in 2016. It has expanded its international capabilities in Europe and worldwide, notably Asia, since the appointment of Michael Casella as president of international insurance in April 2016. Mr Casella, who worked at Chubb for 32 years, is based in London and reports directly to group CEO Stanley Galanski. The company said the Belgian acquisition is part of a strategy to expand its “well-established” specialty insurance expertise to more brokers and insureds across Europe. “The acquisition reinforces Navigators' presence in the European Union's single market, enabling Navigators to best serve its European clients after Brexit, and also provides opportunity for BDM and ASCO to take their well-established expertise to a wider European audience,” added the group, strongly hinting that the UK’s decision to leave the European Union had persuaded it to choose Belgium as a good base in addition to its current London headquarters. "We are delighted to announce the proposed acquisition of ASCO and BDM. Europe is an important market to us today and vital to our international growth strategy – this transaction is an important step to enhancing our presence in and relevance to this dynamic market. BDM has a strong reputation, a rich history and a well-established culture of underwriting expertise that mirrors our own. Together with ASCO, they provide Navigators with a scalable platform to support our product lines and geographic expansion across continental Europe," said Mr Galanski. This latest move from Navigators shortly followed the opening of its new operation in Madrid and the appointment of Carlos Peña Kaiser, also a former long-term Chubb executive, as country manager for Spain on 4 December. The company said this business will focus on serving companies domiciled in Spain, using its newly capitalised retail insurer Navigators International Insurance Company. "Carlos is uniquely qualified to lead Navigators' entry into Spain, as he has extensive insight into the specialty insurance landscape in the region and deep knowledge of the sophisticated solutions that our clients depend on us to deliver," said Guillaume Déal, the firm’s managing director for continental Europe. "We now have five branches across the continent of Europe. This broad network, coupled with our strategic relationship in the Nordic region, allows us to share our technical expertise and local knowledge with a growing number of brokers and companies in the region," he added. Mr Déal was only appointed managing director of continental Europe in March this year. In this newly created position, Mr Déal assumed responsibility for operations in France, where Navigators has a Paris-based underwriting team of five employees. He will also lead the company’s expansion across Europe. Mr Casella said at the time: "Building on our successful launch of offices in Rotterdam, Paris and Milan in 2015, Guillaume will manage our efforts to grow Navigators' product suite in these markets and to further strengthen our increasing presence in continental Europe." Another former Chubb leader to join the Navigators’ European and international operations in recent times was David Draper, who joined the company as head of international casualty back in February.

AM Best gives Navigators Brexit inspired Belgian expansion seal of approval

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