Five-year £1bn capacity deal for MGA First Underwriting

MGA First Underwriting has announced a five-year capacity deal to place about £1bn of gross written premium into the market to provide capacity for its range of specialty products. The MGA said the funds will be used to diversify into multi-line underwriting business. First Underwriting, part of Kingfisher UK Holdings, worked in partnership with Accredited Insurance (Europe) and with McGill and Partners on the deal. It said the extended partnership with Accredited “will continue to deliver on First Underwriting’s strategy to be a total solution for their broking partners and will support new product launches planned for 2022”. Tom Donachie, managing director of First Underwriting, commented: “We are delighted to announce this new long-term deal, which will help support the next chapter of our journey. Accredited has supported us from our launch and as a result, we have formed a strong and ambitious partnership. It was important we secured a long-term deal with A-rated paper to provide our brokers and their customers with the confidence of a secure market. We plan to continue focusing on specialist lines, providing a superior service to our brokers and leaning on the experience of our team of experts.” Colin Johnson, CEO at Accredited, added: “We are delighted to expand our relationship with First Underwriting. Having worked well with the First Underwriting team for some time, we now regard them as a ‘super MGA’ providing a long-term and diversified business stream for us, and we look forward to an exciting future together.” First Underwriting was launched in 2018 focusing on specialist motor, then expanding across property, casualty and bonds. The MGA said the next phase of growth will be to further diversify the book focused on niche non-motor lines. Jacquie Boast, CEO at Kingfisher UK Holdings, said: “This is a unique and innovative capacity solution, which will give First Underwriting the flexibility and scope to build and diversify into a truly multi-line underwriting business. Accredited has been a key partner since First Underwriting’s inception and it is fantastic to now have the certainty of a five-year capacity commitment from an A-rated partner. This new long-term contract highlights the success of the First Underwriting team and their profitable and sustainable growth over the past three years, which have delivered quality business and exceptional service to their brokers and partners.” Andrew Matson, head of structured solutions at McGill and Partners, added: “Accredited’s strength, coupled with the exceptional risk selection of First Underwriting, created a unique opportunity for scale. This, alongside McGill and Partners’ ability to match profitable risk with a broader selection of reinsurance capital, resulted in the provision of a five-year commitment of £1bn of premium capacity. Removing both the uncertainty of the annual reinsurance negotiations and the significant time commitment of the c-suite executives has positioned First Underwriting to focus on profitable growth.”

Five-year £1bn capacity deal for MGA First Underwriting

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