One80 Intermediaries has made its first move into the international market with the acquisition of Canadian MGA Strategic Underwriting Managers (SUM), with plans by the wholesaler for further foreign expansion into the UK and European markets, The Insurer can reveal.
Boston, Massachusetts-based One80, which is the Matt Power-led wholesale broking arm of fast-growing US broker Risk Strategies, has been busy building out its operations since being launched as a separate platform back in January.
And after bolstering its operations in the US with a number of acquisitions, it has now made an international move with the deal for SUM, the terms of which were not disclosed.
“One80 has rapidly expanded throughout the United States and we look forward to establishing an international footprint with Strategic Underwriting Managers,” said Power, the president of One80.
SUM offers property, casualty and other specialty insurance products to brokers throughout Canada from its offices in Toronto, Ontario and Montreal, Quebec.
“We have full authority on each of the programs we underwrite and are proud of the long relationships with each company with whom we trade. In joining One80 we look forward to developing additional capacity, and introducing new products and innovations into Canada,” said Jeff Somerville, president for SUM.
The MGA is licensed in every province and territory in Canada and does not require broker contracts or volume commitments.
“Our immediate focus will be on supporting Jeff Somerville and the team at SUM in the continued expansion of their business. Over time we may consider additional investment opportunities outside of the United States. We would look at the UK/Europe as a potential next step”
One80’s Matt Power on geographical expansion plans
“SUM and One80 uphold a similar entrepreneurial culture and strategic long-term vision. With that we are confident that together, we will further support our brokers on both sides of the border,” Power added.
“Our M&A pipeline remains robust and varied. We continue to see opportunities for value creation and believe we are creating, in One80, an extremely attractive platform that is well positioned for future growth,” Power said.
Future international expansion
Talking to The Insurer, Power said One80’s acquisition strategy is focused on building long-term growth, and consequently the company is considering making acquisitions that further broaden its geographic footprint.
“Our immediate focus will be on supporting Jeff Somerville and the team at SUM in the continued expansion of their business. Over time we may consider additional investment opportunities outside of the United States,” Power said.
“We would look at the UK/Europe as a potential next step,” Power added.
Adds to fast-growing platform
The acquisition of SUM is just the latest deal that One80 has completed as it looks to build out its capabilities as a wholesaler.
Earlier this month, it acquired medical stop loss managing general underwriter (MGU) National Underwriting Services.
Since opening for business at the beginning of this year, One80 has added teams and MGUs.
Supported by its private equity-backed parent, One80 has already opened 19 offices around the US. The company is headquartered in Boston, Massachusetts, but has operations in cities such as New York, Miami, Atlanta, Nashville, Cincinnati, Cleveland, Chicago, Houston, Dallas, Denver, Scottsdale, San Diego and Seattle.
It offers programs targeting a variety of specialist sectors including marine, transportation, property and construction, healthcare, casualty, consumer and recreation, as well as financial lines.