UAE: Nexus completes purchase of majority stake in specialist MGA
Source: Middle East Insurance Review | May 2023
Nexus Underwriting has completed the acquisition of a majority stake in Spectrum Risk Management, a specialist MGA headquartered in Dubai focusing on marine and property insurance and reinsurance.
This is the 16th acquisition for Nexus since its formation in 2008, marking another significant milestone in the group’s international expansion, and broadening its product offering into new classes of business.
The deal was first announced in October 2022.
Spectrum is led by Mr Michael Darby who has more than 40 years of experience in the (re)insurance industry and oversees the marine proposition. Mr Andrew Crampton leads the property portfolio with over 25 years of underwriting experience in the class, including previous senior positions with Swiss Re and Lloyd’s syndicates.
The Spectrum management team will continue to run the business as normal post-transaction while maintaining an ongoing minority stake in the business. Post-acquisition, Spectrum will transition to the Nexus brand.
Kentro Capital and Nexus Underwriting CEO Colin Thompson said, “The completion of this acquisition celebrates not only Nexus’ 16th MGA acquisition, but a landmark acquisition whereby our partnership with Spectrum expands our geographical footprint to Dubai. This deal also sees us acquiring a like-minded entrepreneurial business with similar core values and a proven focus on underwriting profitability.”
With the Spectrum teams’ experience sitting alongside Nexus’s institutional infrastructure, “we see a clear opportunity to build a Nexus Dubai business underwriting in excess of $50m in gross written premiums over the next three years”, he said.
Kentro Capital, formerly known as Nexus Underwriting Management, is the parent company of Nexus Underwriting. M