Specialty Managing General Agent (MGA) Nexus Group has completed the acquisition of the ZON Re-operated personal accident treaty reinsurance MGA that will now be known as Nexus Re.
The US-based treaty reinsurance managing underwriter and Lloyd’s coverholder was acquired via an asset purchase. The acquisition – Nexus’s first in the US – will add treaty reinsurance as a new product line to Nexus’s offerings.
“Following on from the successful conclusion of Nexus’ capital raising process last week, ZON Re’s treaty reinsurance MGA fits the model of profitable, proven, niche MGAs, that we plan to target with our ‘buy and build’ strategy, which will deliver significant EBITDA and value to the Nexus group,” said Colin Thompson, Nexus founder and executive chairman.
Nexus Re trades out of offices in New Jersey and will continue to be managed by ZON Re’s senior management team. For this year it will add EBITDA in excess of $3 million to Nexus.
Kieron Farrelly, Nexus Re chief executive, said: “We are pleased to be joining Nexus and bring our treaty underwriting expertise for personal accident reinsurance following a long and successful run under the ZON Re banner. Our core team and support staff remains intact so that we can maintain continuity as we grow the portfolio with our current panel of risk partners.”
The acquisition – the third Nexus has exchanged on or completed in the past month – only involves ZON Re’s personal accident treaty reinsurance MGA. Under its current brand, ZON Re will still operate a nationally licensed insurance agency and fully digital third-party administrator platform.
The Nexus Group – with offices in London, France, Germany, the Netherlands, USA, Italy, Hong Kong, and Ireland – underwrites 15 specialty products on behalf of 23 underwriting partners.
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