Startup MGA Pivix CEO is bullish on E&S

The excess and surplus (E&S) lines market remains bullish on the back of more than a decade of growth—and a number of drivers mean its trajectory is likely to continue. That makes it a good sector to launch into right now.

This is the view of Mike Miller, chief executive officer of the newly launched Pivix Specialty Insurance Services, a managing general agency focusing on the E&S lines market. Pivix was founded by a team of E&S veterans, largely alumni of Nationwide, as well as Miller, a former president at Scottsdale Insurance.

“A strong US economy will result in growth of commercial businesses.” 

Miller told APCIA Today that several indicators point to a bright future for the E&S market. First, the average growth of E&S over the past six years is 16.8 percent. “This has some rate imbedded in it, but the predominance of this is policy count growth,” he said. “We continue to see business move from the standard market into the E&S market.”

He stresses that the percentage of commercial premiums now in the E&S market continues to grow—and cites five reasons he believes this will continue.

First, he believes a strong US economy will result in growth of commercial businesses. Second, he thinks interest rates will most likely go down over the next year or so. This will put pressure on carriers to maintain underwriting discipline in order to continue to earn a proper return on capital, he states.

Third, he believes reinsurance has stabilised at the current levels. Fourth, general inflation and social inflation will continue to put pressure on results: “again pressuring companies to maintain underwriting discipline”.

Finally, he notes, there continues to be prior-year development on commercial casualty lines. “All these issues will push everyone to maintain underwriting discipline and continue the performance level that has been achieved in the E&S market over the past several years,” he said. 

Market needs

Miller said Pivix plans a soft entrance before the end of the year and is prepared to grow in the market during 2025 and beyond. “Our plan is to respond to the needs of the market. With that, growth will come to us in a measured way that will be supported by the capital of the capacity provider. 

“We look for areas where our knowledge, expertise and skills can bring value to the wholesale agent and produce profitable business for the carrier. We are starting with a contract binding authority programme and will move into other areas from there.”

He believes the company’s biggest selling point will be the experience its founding team offers, which he describes as “unprecedented”.

“We know this market better than many others. We have the level of experience, knowledge, and skills that will result in the production of profitable business for each of our programmes. 

“On top of that, we have a technology platform that will make us easy to do business with and result in higher levels of efficiency and effectiveness. Finally, we have a track record of success that demonstrates our ability to deliver. Our attitude is ‘get ‘er done’!” he concluded.

For more news from the American Property Casualty Insurance Association (APCIA) click here.

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