AM Best gives thumbs up to Hadron’s Folgate acquisition
Hadron plans European expansion
AM Best has placed under review with positive implications the Financial Strength Rating of UK carrier Folgate Insurance, following the announcement that the group, which originally launched in 1887, has been acquired by affiliates of US-based Hadron Specialty Insurance (Hadron).
Hadron is an insurance carrier formed in 2023 to provide insurance capacity to managing general agents.
“The under review with positive implications status reflects the anticipated improvements in Folgate’s rating fundamentals that are associated with Hadron’s business plan to materially grow the entity and provide implicit and explicit financial support. Folgate is expected to be strategically important to Hadron as a principal writer of business in the United Kingdom,” said the credit ratings agency.
Hadron did not disclose the price paid for the Folgate business, which was placed into run-off in 2002 but resurrected by APC Underwriting in 2014. Hadron sees the historic London market name as the perfect base for its expansion plans in Europe.
“Hadron’s entry into the UK is a testament to the impactful global approach Hadron has developed to enable the success of its specialty MGU partners,” said Sam Gaynor, managing director of Altamont Capital, Hadron’s equity sponsor.
“We are delighted to build on Folgate’s centuries-long history as we marry best-in-class underwriting and portfolio management technology with reliable, long-term insurance capacity to address the pain points of specialty underwriting firms,” added Gaynor.
Hadron only announced its launch in the fourth quarter of 2023 and is backed by over $250m in capital from Altamont and other institutional investors. The US entity, Hadron Specialty Insurance Company, has obtained an A- (Excellent) rating from AM Best in Financial Size Category VIII.
The acquisition of Folgate expands the Hadron footprint from 50 US states and DC into the UK. “Using a disciplined yet pragmatic view of underwriting risk, and working closely with its MGU specialists and risk capital providers, Hadron designs optimal, efficient structures that support both rapid paths to market and long-term stability,” said the firm.
