Specialty Managing General Agent (MGA) Nexus Group has announced the acquisition of Capital Risks (CRML), a London-based Warranty and Indemnity MGA.
Nathan Sewell and Jason Edwards founded CRM in August 2017 to provide transaction liability insurance for small and medium sized deals. The acquisition of CRML will enable Nexus to develop its financial and professional lines (FinPro) products.
The CRML underwriting team will continue business as usual and move into Nexus’ London headquarters.
Sewell will remain on the CRML Board as a non-executive director and Nexus plans appoint group chief executive officer Colin Thompson and a number of other directors to the CRML board. After the acquisition is complete, CRML will be rebranded and trade as Nexus Transactional Risks.
The acquisition of CRML marked Nexus’ 15th transaction and it’s second in a week, after the business bought trade credit broker Credit & Business Finance and launched Xenia Broking Group.
Nexus has also successfully concluded a second capital raise of £16mn that will enable it to further continue its merger and acquisition activity.
Thompson, Nexus founder and group CEO, said: “This is an excellent opportunity for Nexus to further diversify into a growing product area with traditionally high barriers to entry through the acquisition of an MGA with highly attractive underwriting margins. Focussing on small and medium sized deals, CRM is a complementary fit with our existing FinPro book, which was the first class we launched in 2008 and now produces gross written premium of £50mn.”
Angus Ogg, underwriting director of CRML, commented: “We are delighted with the acquisition by Nexus which will bring new opportunities to CRML and will increase our scope in terms of capacity and geography. We are very much looking forward to the next stage of development, growing our team and working with the like-minded individuals at Nexus.”