Liberty Mutual is looking to sell the high net worth (HNW) unit of Ironshore, the carrier it bought for around $3bn two years ago, The Insurer can reveal.

Ironshore Private Client Group – For sale

Although the exact size of the book is not known, sources suggested premium volume at Ironshore Private Capital Group (IPCG) is somewhere north of $100mn.

The HNW unit is led by Daniel Olmsted, who has been with Ironshore since 2010, and was previously president of Ace Private Risk Services.

Other key personnel include CUO Curt Goetsch, who was with Olmsted at Ace Private Risk Services.

According to sources, the US insurance giant is using its in-house M&A team led by Dmitri Smolyar to sell the business, with a transaction likely to take the form of a team and renewal rights acquisition.

It is thought the majority of the IPCG business is distributed through MGAs.

Among the largest relationships with distribution partners is believed to be Hull & Company, the wholesale MGA owned by Brown & Brown.

IPCG lists in excess of 70 distribution partners on its website. It is thought to offer products on an admitted and non-admitted basis, through both retail and wholesale channels.

As well as its core HNW homeowners offering, the unit writes umbrella, valuable articles, fine arts, watercraft/yacht and personal protection insurance, according to its website.

Liberty is a major personal lines writer in the US and is ranked third in homeowners insurance with a 6.9 percent market share, based on 2017 direct written premiums.

It is not known at this stage which companies have been approached to buy the HNW business.

Major players in the segment include Chubb, AIG and PURE, while more recent entrants include Vault and WR Berkley’s Berkley One operation.

Recent hurricane activity and the California wildfires have been the source of significant claims for HNW insurers over the past two years, challenging profitability where carriers have high concentrations of exposure.

When contacted by The Insurer in relation to this article, Liberty Mutual said it “does not respond to market rumour or speculation”.

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