Gallagher's Pen makes strategic move into Ireland with major MGA buy

Arthur J Gallagher’s specialist underwriting subsidiary Pen Underwriting has expanded into a “key strategic territory” by acquiring a specialist transportation and haulage MGA that will add a significant €40 million GWP.

Pen has established its first on-the-ground presence in Ireland by acquiring Wrightway Underwriting, a managing general agent (MGA) providing motor and liability coverages for the haulage and fleet sector across Ireland through its independent broker clients, as well as other commercial and personal insurance products. It also underwrites light commercial vehicles, plant and machinery, non-standard household risks and private motor.

The business will become part of Pen Underwriting, and David Crean will continue to lead the team from its current location alongside Linda Roberts and Mary Lyons.

Pen said the move is part of its strategy to spread its reach in other geographical areas and expand its specialist product capabilities. Specifically, Pen’s strategic growth ambitions is to “become a £1bn GWP underwriting and distribution business, through selective acquisitions and strategic hires that extend its offering of niche and emerging insurance solutions.

Established in 1999, Wexford-based Wrightway has grown to become “one of the largest MGAs in Ireland”, generating in excess of €40m gross written premium (GWP).

Tom Downey, CEO of Pen Underwriting, said: “From our earliest conversations with Dave and the team, we knew Wrightway would be a fantastic fit for Pen, culturally as well as commercially. Having identified Ireland as the ideal geographic location for our next European hub it has everything we are looking for – great people leading a growing business; an outstanding reputation among brokers as the go-to provider of risk solutions in its chosen specialisms; and an impressive track record of disciplined, profitable underwriting."

He added: “Bringing Wrightway into the Pen family will enable us to further expand into a country where we have long-established trading roots, to develop and distribute new products into the Irish market and to bring new, complementary capabilities into our own existing stable of specialisms. In particular, Wrightway’s strengths in the haulage and transportation space dovetail brilliantly with our 30-plus years’ experience in mitigating losses, providing cover and managing the exposures of hazardous goods, bulk liquids and associated trades. We can’t wait to get started.”

J. Patrick Gallagher, Jr., chairman and CEO, commented: “Wrightway brings a reputation for client excellence, complements Pen's existing specialist capabilities and provides further growth opportunities for our Ireland operations. I am delighted to welcome David, Linda, Mary and their colleagues to our growing, global team.”

Wrightway managing director Crean, said: “Thanks to an exceptional team dedicated to relationship-driven client service, Wrightway has flourished into an MGA of scale, quality and national reach from a standing start in 1999. It seems fitting that as we turn 25 years old, a new chapter in our growth story begins and with a partner we share common values and principles with.

“Just as we do, Pen knows the importance of having a broker-centric approach to service, with underwriters keen to trade, access to decision-makers and first-class claims solution. But also the importance of sustainable growth, good governance and effective capacity management. There are big benefits and huge potential for our colleagues, broker clients and capacity in coming together and we are delighted to become part of Pen to build an even better business together.”

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