Ethos Specialty expands transactional risk capacity with Starr partnership

Ethos Specialty Insurance Services LP, a subsidiary of Bishop Street Underwriters, has expanded its North American transactional risk capacity through a new partnership with Starr Insurance Companies.

The addition of Starr increases Ethos Specialty’s carrier panel, which already includes AXIS and Skyward Specialty, and brings the firm’s total capacity limits to $45 million in the United States and $25 million in Canada.

Starr, a global insurance and investment firm, holds an “A” (Excellent) rating from AM Best and operates in more than 100 countries. It provides a wide range of insurance products, including property, casualty, accident and health, aviation, marine, energy, and excess casualty coverages, serving multinational corporations and specialty sectors alike.

Navine Aggarwal (pictured above), chief executive officer at Ethos Specialty, said the partnership with Starr aligns with the company’s mission to provide risk solutions across the US and Canada.

“Starr’s legacy of underwriting excellence and financial strength aligns perfectly with our mission to provide market-leading risk solutions across the US and Canada,” Aggarwal said.

The announcement comes as transactional risk insurance continues to experience significant shifts. In 2024, global mergers and acquisitions activity reached $3.4 trillion, an 8% increase from the prior year. This growth drove a 38% increase in transactional risk insurance limits placed by Marsh, totaling $67.8 billion across more than 2,750 policies.

Market conditions for transactional risk insurance have tightened. Primary layer pricing for policies declined 12-15% throughout 2024 due to surplus capacity. However, by the first quarter of 2025, reinsurance treaty renewals prompted rate hikes between 20-25%, leading many managing general agents to reassess their portfolio strategies.

The move also comes as capacity in the transactional risk insurance market continues to face tightening conditions. Despite market constraints, Ethos Specialty notes that it has reported a 90% year-over-year growth in its transactional risk business, outpacing peers who have faced contraction.

The broader market outlook indicates that rates for representations and warranties insurance and tax insurance are expected to increase by 10-15%, according to a report from WTW.

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