Banyan Risk Ltd., a specialty managing general agent (MGA), announced a strategic partnership with global reinsurer PartnerRe to increase its directors and officers (D&O) insurance capacity.
Under the terms of the agreement, PartnerRe will provide US$5 million in capacity, enabling Banyan Risk to offer D&O limits up to US$10 million.
The new agreement builds upon an existing partnership between the two companies, which recently expanded to include excess casualty insurance coverage led by Alan Rodrigues, an experienced industry professional.
Banyan Risk was established in 2021 by co-founders Peter Horrobin and Tim Usher-Jones and currently operates out of its headquarters in Bermuda. The company has since expanded internationally, including the launch of Banyan Risk Services Ltd., a Canadian subsidiary.
Banyan Risk has written more than US$130 million in premiums across its product offerings, becoming an established participant in the specialty insurance market.
Horrobin (pictured above), co-CEO of Banyan Risk, said that the partnership reinforces its commitment, particularly in an environment where certain market participants are either withdrawing from segments or lowering their D&O limits.
The collaboration also comes amid a strong 2024 for PartnerRe, with the reinsurer recently posting net income attributable to the company of US$1.44 billion and operating income of US$1.22 billion in its full-year results.
The D&O market continues to face notable shifts, influenced by various economic and regulatory factors.
Throughout 2024, many organizations benefited from premium reductions. A report from Dominion Risk notes that the average cost of $1 million in D&O coverage decreased by 5.2% in the second quarter of 2024 compared to the same period in 2023.
The market has also seen an influx of new entrants, leading to heightened competition and expanded capacity. This surge has resulted in more favorable pricing for insureds.
While premium decreases have been prevalent, there are indications that the rate of these reductions is slowing. Some industry experts suggest that current pricing levels may be unsustainable in the long term, potentially leading to market corrections.
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