London specialty managing general agent (MGA) Nexus Group has bought trade credit-focused MGA Equinox Global.
London market re/insurer Beazley was previously Equinox’s largest shareholder.
The trade credit coverholder will continue to underwrite with capacity provided by Beazley, Nexus said, via a 10-year underwriting support agreement.
Nexus announced on July 14 that it had secured an additional £30m in loan funding for its expanding MGA business.
Founding Equinox shareholders and management team Steen Parsholt, Mike Holley, Rob Crampton and Vicki Harrison will continue to support the business, Nexus said.
Parsholt will remain as chairman and Holley as CEO, with the founders of Equinox and Beazley becoming shareholders in Nexus, “aligning all parties to grow and develop the business”, the press release said.
Equinox has offices in London, New York, Paris, Hamburg and Amsterdam.
Nexus trades from offices in London, France, Germany, Netherlands, USA, Italy, Hong Kong and Ireland.
Nexus founder and executive chairman Colin Thompson said: “We are excited about working together with Mike and his team to build a global market leading trade credit offering which, when combined with our current trade credit MGA Nexus CIFS (the trade credit arm of Nexus), will be a £60m gross written premium business underwriting profitable global specialist trade credit insurance.
Nexus underwrites 15 specialty products on behalf of 23 underwriting partners that support its product offerings within financial lines, trade credit, accident and health, surety, travel, property, latent defect, marine and cyber risk underwriting.
“Importantly, Equinox and Nexus CIFS’ books of business are complementary, with very little overlap, both in terms of line sizes and geographical focus, resulting in significant opportunities to expand globally by harnessing the joint distribution channels following the transaction,” said Thompson.
At the end of June, Nexus announced its acquisition of Lloyd’s marine cargo re/insurance coverholder Vectura Underwriting from Aquila.
Thompson added: “Following on from the announcement of Nexus’s purchase of Vectura Underwriting last week, this is another example of the successful execution of Nexus’s “buy and build” strategy which will add significant EBITDA and value to the Nexus group.”
Equinox CEO Holley also commented: “There is a significant opportunity to take advantage of Nexus CIFS' product offerings, feeding these through and leveraging the significant investments Equinox has made in its international office network and infrastructure.
“Equinox specialises in writing trade credit insurance for larger corporates and multinational companies.
“The product offering includes non-cancellable credit limits; syndication with other credit insurers, and a top quality credit limit service delivered by its state of the art online portal Equinox Approach,” said Holly.
Richard Marriage, managing director, Nexus CIFS, added: “Both the Nexus CIFS and Equinox teams look forward to mutually enhancing the combined offering that was so successfully developed by each business in their respective market places.
“Working together will result in market leading service and expertise being provided to our supporting brokers and unique distribution opportunities across our underwriting capacity providers.”
Nexus and Equinox have exchanged contracts, with completion scheduled for later this year.