RSG seizes the moment to target Europe

RSG was created in 2010 by Patrick Ryan, the founder and former chairman and CEO of Aon Corporation. Ryan Specialty Group operates as a specialty insurance organisation that provides solutions for brokers, agents and insurance carriers, and consists of an underwriting management arm, RSG Underwriting Managers (RSGUM), and a US-focused wholesale brokerage, RT Specialty.

RSGUM is currently comprised of 22 distinct underwriting companies, 16 of which are based in the United States, and places in excess of $1 billion of premium into the market. A substantial portion of the capacity that supports that premium is provided by Lloyd’s of London. Eyeing the potential of European expansion, the group established a hub in London, and Peter McKenna was brought on board to spearhead the initiative.

“We have six managing general underwriters (MGUs) in Europe, four headquartered in London, two in the Nordics, and others are emerging. Initially formed to underwrite US generated business, we have now more broadly expanded our appetite to include UK and continental Europe originated business,” Rice says.

Growth areas

London-based MGU EmergIn Risk, for example, specialises in enterprise solutions for complex cyber and related risks. Cyber is a potential growth area in continental Europe, driven by the recent introduction of the EU General Data Protection Regulation (GDPR).

“We’re in the middle of creating some interesting solutions for small companies to be able to purchase cyber cover in a way that complies with GDPR regulations. You’ll see us really attack that market,” McKenna says.

The new product will approach cyber as a service, including crisis management and new regulations, with the product set designed as a vendor solution expected to be unveiled later in the year.

“To complement our US based transactional business with Concord Specialty Risk, we acquired Hunter George & Partners to address the needs of the European market,” McKenna notes.

Concord and Hunter George provide transactional risk insurance and loss mitigation services that address the risk of loss arising from mergers and acquisitions, potential regulatory enforcement, pending lawsuits, uncertain tax positions, litigation and other contingent liabilities.

“That business continues to flourish here in Europe,” McKenna says.

In January 2017, RSG acquired the Nordic operations of Navigators, renaming them RSG Sweden and RSG Denmark.

RSG Denmark offers professional liability, directors and officers liability (D&O) and management liability products to private and public corporations and RSG Sweden offers management and professional liability products to private and public corporations, including prospectus liability, commercial crime and D&O as well RSG introduced products such as cyber and warranty and indemnity (W&I) and financial institution coverages provided by StartPoint, RSG’s London based D&O facility.

“We became much more relevant very quickly. We’ve seen a steady growth pattern in the Nordics and we will continue to invest in our businesses,” McKenna notes.

Uncertainty surrounding Brexit and a Lloyd’s market that is struggling to remain competitive due to comparatively high operating costs may be accelerating a trend to ‘go local’ in continental Europe.

“We are actively seeking opportunities in continental Europe to acquire staff and MGUs to add their specialties to our existing suite of over 90 products and bring them closer to buyers and the brokers who represent their interests. We recognize and support the desire to have global product expertise delivered locally,” Rice explains. “When combined with our shared services back office support which provides industry leading efficiency, we believe we have a formula for significant enduring success.”

“More recently, PERse, the RSG owned US-based MGA, has expanded its appetite by establishing a satellite office in London to serve the needs of renewable energy enterprises in the rest of the world. PERse specializes in underwriting energy risks with a primary focus on renewable energy.” McKenna foresees huge potential in this rapidly growing industry. Additionally, RSG is exploring the possibility of expanding the reach of Global Special Risks (GSR) into Europe to provide its products and services for upstream energy and energy related marine risks. ”As a strategy, we will expand our local expertise globally wherever we see the opportunity to make a difference for our broker partners,” Rice added.

The group’s latest move was to announce the formation of RyanRe  Underwriting Managers, a reinsurance MGA formed to underwrite treaty and facultative property, casualty and professional liability reinsurance introduced and produced by reinsurance brokers. In forming the MGA, Pat Ryan commented that “A reinsurance MGA is a natural evolution for RSG and expands our strategic underwriting management direction. With RyanRe, we will be able to bring new reinsurance solutions to our agents and brokers.”

Following on Rice concluded that “Among the many benefits that RyanRe brings to our group, we are excited about the potential support it brings to our European expansion plans. The future is indeed exciting.”