Nexus Group buys Capital Risks MGA

Independent specialty Managing General Agent (MGA) Nexus Group (Nexus) has acquired Capital Risks MGA (CRM), a London based warranty and indemnity MGA.

Nathan Sewell and Jason Edwards launched CRM in August 2017 to offer transaction liability insurance for small and medium sized deals. The purchase of CRM will enable Nexus to develop its financial and professional lines (FinPro) products.

CRM’s underwriting team, made up of Angus Ogg and Richard Mills, will stay with the business and move into Nexus’ London headquarters.

Sewell will remain on the CRM board as a non-executive director.

After the deal completes, CRM will be rebranded and trade as Nexus Transactional Risks. Nexus plans to appoint group CEO Colin Thompson and a number of other directors to the CRM board.

Colin Thompson, Nexus founder and group CEO, said: “This is an excellent opportunity for Nexus to further diversify into a growing product area with traditionally high barriers to entry through the acquisition of an MGA with highly attractive underwriting margins.

Focussing on small and medium sized deals, CRM is a complementary fit with our existing FinPro book, which was the first class we launched in 2008 and now produces gross written premium of £50 million.

“We see a number of exciting cross selling opportunities across our FinPro client base which we will look to exploit via our comprehensive product suite, infrastructure and distribution channels - always with a focus on underwriting profitability.”

He said the acquisition marked Nexus’ 15th transaction and its second in a week, after the company bought trade credit broker Credit & Business Finance and launched Xenia Broking Group.

“This is an exciting time for Nexus and the completion of our second capital raising process means we will be able to continue on the dynamic growth strategy we are currently enjoying,” he added.

Nexus has also successfully concluded a second capital raise of £16 million that will enable it to further continue its merger and acquisition activity.

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