Beazley boosts Asia-Pacific expansion plan by taking 30% stake in Hong Kong’s Pegasus

Specialist Lloyd’s-based insurer Beazley has followed up its announcement made earlier this week about its Asian expansion plans, by revealing that it has taken a 30% stake in Pegasus, a Hong Kong-based coverholder. Beazley began working with Pegasus in January 2019, in an arrangement that the insurer said combines the coverholder’s knowledge of the market and strong broking relationships with its own global expertise in financial lines, including professional indemnity, D&O, cyber and medical malpractice liability. James Eaton, Beazley’s head of specialty lines, said the investment in Pegasus will help the London-based insurance group extend its financial lines offering out of Hong Kong and Greater China, and supplement the insurer’s existing operations in Lloyd’s China and Singapore. “Our successful partnership with Pegasus has created a robust proposition and efficient distribution channel for both brokers and commercial customers. We are excited about the opportunities this provides us to build out our financial lines offering in Hong Kong and Greater China, and complements our existing underwriting hub in Singapore. The investment is part of our long-term commitment to this region,” explained Mr Eaton. Pegasus, a Lloyd's coverholder, is headed up by insurance veteran Tony Lau, as CEO, who has spent more than 40 years in insurance and served in various senior roles at Marsh before moving into underwriting. Mr Lau said: "We are delighted to be strengthening our partnership with Beazley, which shares our ambition and long-term objectives to build a regional specialty business.” The Pegasus investment is part of a wider push by Beazley to expand across the Asia-Pacific region by hiring new staff, offering its specialty products on a sector-specific basis and entering into new ‘white-label’ partnerships, such as that with Pegasus. The insurer believes that a rising awareness of risks such as cyber and their potential impact is sparking demand for the kind of specialty products that it offers. Beazley, which wrote more than $2.6bn in premiums in 2018, set up its hub in Singapore in 2006 and operates on the Lloyd’s Asia platform on both an insurance and reinsurance basis. Apart from its relationship with Pegasus, it also writes reinsurance business through Lloyd’s Insurance Company (China) Ltd. The insurer said earlier this week that it is making a further “strategic investment” in the region, to increase underwriting capability where it sees the opportunity to strengthen its existing offering. Beazley said it is also developing new products that will be launched in areas where it has achieved proven success in other territories. “Hiring for additional underwriters is already underway in specialist areas including cyber and technology, accident and health, M&A and specialty treaty. More new roles are expected to be created over the next 12 months,” explained the insurer. “In Asia-Pacific, Beazley’s current product offering spans property, marine, political risks, political violence, contingency, cyber, financial lines, management liability and treaty reinsurance solutions. An increased presence in Asia-Pacific will also enable Beazley to build out sector-specific offerings in those areas where it has extensive claims and underwriting experience, such as financial services and healthcare. White-label partnerships with other carriers, which provide new distribution channels for Beazley’s specialist products, are another area that Beazley sees an opportunity to expand its current offering,” continued the company statement. Lucien Mounier, head of Asia-Pacific at Beazley, said: “This is an exciting time for Beazley in Asia-Pacific, as we aim to increase our footprint and achieve sustainable, long-term growth. Our presence in this region has expanded steadily since we set up in Singapore 13 years ago. This is now the right time for us to make a strategic investment into further developing our propositions and on-the-ground presence.” A rising sophistication and awareness of risks and a more strategic approach to risk management and transfer are clearly a driving force for the insurer’s expansion plans in Asia-Pacific. “The commercial insurance markets within Asia Pacific are at different levels of maturity, however there is a growing sophistication and awareness of their risks and requirements among clients. As intangible threats to businesses grow, such as cyber threats and risks to their reputations and brands, it is more important than ever to build long-term partnerships with our clients and brokers,” added Mr Mounier, who took over his role in April last year, relocating from Beazley’s Paris operation. “Our investment in Asia-Pacific demonstrates a firm commitment to this region and to ensuring clients have access through brokers to innovative solutions that evolve to meet their changing risk landscape,” concluded Mr Mounier.

Beazley boosts Asia-Pacific expansion plan by taking 30% stake in Hong Kong’s Pegasus

Want to read this article?

Read Next

Swedish risk managers told to focus on flexibility rather than resilience

European Parliament votes for ‘hard-fought compromise’ on CSDDD

Rates fall in most regions during Q1 but rise in Europe and US: Marsh

Major cyberattack would hike rates but insurers would ‘brush off’ losses: Lockton Re

Chubb says Q1 saw ‘best rates’ as it books $2bn profit

Swedish risk managers told to focus on flexibility rather than resilience

European Parliament votes for ‘hard-fought compromise’ on CSDDD

Rates fall in most regions during Q1 but rise in Europe and US: Marsh

Major cyberattack would hike rates but insurers would ‘brush off’ losses: Lockton Re

Chubb says Q1 saw ‘best rates’ as it books $2bn profit

Want to read this article?

Read Next

Swedish risk managers told to focus on flexibility rather than resilience

European Parliament votes for ‘hard-fought compromise’ on CSDDD

Rates fall in most regions during Q1 but rise in Europe and US: Marsh

Major cyberattack would hike rates but insurers would ‘brush off’ losses: Lockton Re

Chubb says Q1 saw ‘best rates’ as it books $2bn profit

Related Articles