Ryan Direct Group (RDG), the leading insurance services business and part of Chicago-based Ryan Specialty Group (RSG), has entered into agreement to acquire Northern Ireland-based MGA Midas Underwriting (Midas), subject to regulatory approval.
The consideration is undisclosed.
Derek Coles, RDG CEO, said the acquisition will give RDG extra capability in niche and specialist lines in home, motor and commercial: "Midas is a specialist business, like RDG, and the Midas book complements our existing portfolio in SME, property owners and landlords, and additionally supports our medium term aim of creating a balanced commercial and personal lines book."
He added: "It marks RDG’s first significant foray into the niche and specialist motor market, building on our existing TPA arrangement with the Only Young Drivers brand in the UK. We look forward to working with Midas’ existing capacity providers, including Axa, Ageas and KGM, to deliver accelerated growth and profitability across all business lines."
He said that RDG’s acquisition of Midas will also give RDG access to enhanced claims capability, especially in motor, which "adds considerably to the services the Group can offer our insurance and broking clients."
Alan Hunter, managing director of Midas, said: "This acquisition by RDG is a huge vote of confidence in our business and our people. It strengthens our position as a leading player in the Northern Ireland and Irish market, and will give us added financial strength to accelerate growth under the RSG brand."
Mr Hunter said Midas’ business includes SME, commercial vehicle, personal home and motor, non-standard home and car, property owners and ancillaries. Midas will write in excess of £30 million GWP into the market in its current financial year covering the mainland UK, Northern Ireland and Southern Irish markets.
Mr Coles said that Paul Donaldson, currently non-executive director of RDG, will chair the acquired business, which is headquartered in Belfast, and has an additional office in Chelmsford, Essex. The acquisition is expected to complete during the first quarter of 2016.