Howden DUAL's 'transformational deal' to create $2bn GWP MGA group

DUAL, the underwriting arm of Howden Group Holdings, has struck an acquisition deal to create an international $2 billion gross written premium managing general agency (MGA) group.

DUAL is currently the world’s largest international MGA with over $1 billion of GWP, based in 16 countries, more than 80 capacity providers, and 7,000 broker partners.

The MGA is acquiring rival Align Financial Holdings, a specialist general agency and underwriting management groups in the US, underwriting over $630 million GWP on an annualised basis through its commercial casualty, commercial property catastrophe, personal property, and surety businesses.

Following the deal, Align founder and CEO Kieran Sweeney (pictured) will lead the combined US businesses, supported by Jim O’Connor, CEO of DUAL North America, and John Johnson, president of Align. Sweeney will also become executive chairman of DUAL Group globally and a member of the Howden Group executive committee. Current DUAL Group non-executive chairman David Ibeson will become a non-executive director.

David Howden, founder and CEO of Howden Group, said: “Since we founded DUAL in 1998, it has expanded from a small financial lines operation in Spain to having the broadest geographic and specialist product distribution platform of any MGA, with operations across the US, Europe and Asia Pacific.

“Kieran shares a strategic vision with us to create an international MGA of real scale, using data and advanced technologies to redefine the underwriting business of the future. Both our businesses have been built with entrepreneurial talent and strong capacity relationships, and now the scale of the combined businesses will open more doors to attracting new talent, new capacity, and enhancing data and analytical capabilities, as we pursue our ambition to become the next-generation underwriting business that breaks the mould.”

Richard Clapham, CEO of DUAL Group, added: “Kieran and his team have built one of the standout specialist program managers in the US market, and this deal represents the unison of two highly complementary businesses which are keenly focused on delivering underwriting excellence as their primary directive.

“The complementary product and programme mix, the broadened distribution, cross-sell opportunities, deepened pool of capacity providers, and expanded broker partnerships, present a very special opportunity not only in the US, where the business will be one of the largest general agencies in the biggest marketplace in the world, but globally. Our ambition is to build a standout underwriting business of real scale globally that allows capital to back talent cost effectively, combining specialist products with great distribution through our broker partners, whilst keeping our culture. This ambition is accelerated sharply by the acquisition of Align, and I very much look forward to working with the team.”

Sweeney commented: “This is a momentous next step for Align, and one I am delighted to take with DUAL and Howden Group.  What stood out to me from the start of our conversations with David, Richard and the senior team was that the platform we will become a part of is entirely designed to be one in which great people thrive.

"The opportunity to grow a next-generation underwriting management business that charts new territories for ourselves and our partners is very real and compelling. It was immediately clear to our Board and Align’s major investor, Bregal Sagemount, that DUAL Group has an exciting future, and that the talented team that has joined us at Align over the past eighteen years will be presented with incredible opportunities in the newly combined business.”

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