Priya PatelTLDR:
Insurer Hadron has acquired Folgate Insurance Company as part of its entry into the UK market. The deal helps New York-based Hadron extend its presence from the US into Britain and address issues in the insurance market such as data efficiency and service quality. The company targets managing general underwriters seeking insurance cover and relies on combining underwriting and portfolio management technology with long-term insurance capacity to ensure its stability.
Key elements in the article:
- Hadron expands into UK with Folgate Insurance Company acquisition.
- Hadron aims to improve insurance model efficiency and service quality.
- Hadron offers capacity and reinsurance services to managing general underwriters (MGUs).
New York-based insurer Hadron has entered the UK market with the purchase of Folgate Insurance Company. The precise details of the acquisition have not been released, but heading into the UK is a strategic decision for the firm, which has thus far operated only in the US. The acquisition represents the firm’s bid to address inefficiencies in the hybrid insurance model, which refers to a system in which insurers make use of a combination of internal specialists and external providers in order to underwrite policies.
The company’s core service offering is capacity and reinsurance for managing general underwriters (MGU), a group which focuses on creating specialty insurance policies. By combining best-in-class underwriting and portfolio management technology with long-term insurance coverages, Hadron aims to address the pain points of MGU firms. In particular, the company is looking to offer stability by operating under a discipline risk assessment while providing a path to market that is as quick as possible.
A spokesman for the firm said Hadron hopes to “improve service quality, enhance data and technological efficiency, add value to programme partners and expedite speed to market”. MGU firms will be assured by the fact that Hadron has experience within the sector, having developed partnerships with risk capital providers and MGU specialists. In an interview, Sam Gaynor, managing director of Hadron’s equity sponsor, highlighted the company’s record of helping specialist MGU partners and added the acquisition was a testament to his firm’s “impactful approach”.”We are delighted to build on Folgate’s centuries-long history as we marry best-in-class underwriting and portfolio management technology with reliable, long-term insurance capacity to address the pain points of specialty underwriting firms”, Gaynor added.
Ian Russell, chief executive officer at Folgate also welcomed the deal. Folgate was founded in 1887 and Russell sees bright future working alongside his new parent company. “Folgate was established in 1887 and has continuously stood out as a well-run and capitalised insurance entity,” he noted. “I couldn’t be more delighted about our bright future with Hadron and look forward to working with its team to serve the specialty MGU market in the UK.”
