European alternative investment manager Arrow Global has expanded its insurance arm with the acquisition of Fusion Specialty Group, a specialist managing general agent (MGA).
Arrow Global Insurance (AGI), the firm’s specialty insurance platform, has acquired Fusion to strengthen the platform’s existing specialist MGA and underwriting process.
Fusion has processed more than 23,000 submissions and written around £290m in gross written premiums for approximately 1,500 policyholders, according to Arrow.
“The addition of Fusion, a high-quality specialist MGA with an outstanding underwriting track record, further strengthens that platform and expands the range of differentiated specialty insurance opportunities available to our institutional investors,” said Zach Lewy, chief executive and chief investment officer at Arrow Global.
Read more: Arrow hires CEO to lead division in new insurance arm
Arrow Global launched AGI in March, targeting the specialty insurance market rather than following the broader trend of alternative asset managers expanding into life insurance.
At the time, Dan Adams, managing director and head of insurance at Arrow, said specialty insurance remained difficult for institutional investors to access and represented a gap in the market.
“We see the opportunity in the specialty insurance market, which serves specialised risks and typically requires experienced underwriters with the expertise to price and structure coverage appropriately,” he said.
Specialty insurance primarily covers commercial risks that require expert, often bespoke, underwriting to assess non-standard or complex exposures that are not typically addressed by conventional property and casualty policies.
Arrow Global, which manages €125bn (£108.2bn) of assets, launched AGI as an extension of its investment platform, which focuses on private credit and real estate.
Read more: Arrow Global hires CEO Spain to lead origination strategy
