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Volante inks $900mn capacity deal

  • Publish Date: Posted about 6 years ago
  • Author:by Alan Jarque

Volante Global, the new international MGA platform led by Talbir Bains, has secured a $900mn capacity deal that will see the launch of nine additional underwriting teams.

The multi-class, multi-territory capacity will be provided by a panel of three unnamed global A+ rated insurers.

The new teams are scheduled to launch on the Volante platform in the second half of 2018. 

They will work across seven distinct classes of business and operate in North America, Europe and Africa. Business lines include: property, general liability, space, international motor, facultative P&C, leisure and sport, financial institutions, North America auto and professional indemnity. 

The Nephila-backed MGA platform said that the single treaty agreement has been secured on a multi-year LTA basis with zero arbitrage fixed commissions.

Volante’s earnings will be fully contingent on profit commission which is calculated based on carrier performance over the period of the agreement, it added.

Volante founder and CEO Talbir Bains said: “What the transaction delivers in our view is a back-to-basics approach to the MGA-Carrier relationship.

“We have embedded within the commission structure of this deal a contractual alignment which necessitates that the underwriting profitability of our carriers is Volante’s primary focus in all aspects of the underwriting journey. This is about building a partnership predicated on complete alignment to the combined operating result of our capacity providers.”

Aon Reinsurance Solutions UK CEO Nick Frankland, who helped structure the transaction, said: “We are delighted to have played a role in building this unique partnership structure between Volante and its providers, which we believe sets a new standard for the multi-class MGA model. 

“By combining world-class capacity, leading sector expertise, and technology that enables business to be analysed and transacted quickly and efficiently, we feel that Volante is well-positioned to be a huge success.”

Volante already has two teams operating on its platform: Bridge Underwriting, a Stockholm-based specialist underwriting team operating across multiple P&C lines, and Edison Motor, a London Market-based team offering specialist commercial motor insurance products in the UK.

A third team, Horizon, is expected to commence underwriting treaty reinsurance business based in Zurich at the beginning of next year.

Volante launched in October 2017 with the backing of ILS manager Nephila Capital.