Pen Underwriting creates first cornerstone capacity placement as virtual insurer evolution continues
Pen Underwriting has completed the next phase of its strategic development as a virtual insurer by consolidating 15 UK household and SME portfolios into a five-year, £550 million, single quota share arrangement led by Legal & General.
This cornerstone placement will provide capacity for £110m of annual gross written premium. The creation of a single ‘master’ binder for Pen’s UK household and SME business will benefit customers and distribution partners through improved trading efficiencies, quicker product-to-market delivery and enhanced product and service offerings, as well as first-class security on a long-term basis.
Jonathan Turner, CEO of Pen Underwriting, said: “Launching this cornerstone placement for Pen’s UK household and SME business is a key milestone in our evolution as a virtual insurer. We’re delighted to have secured this meaningful, long-term capital commitment led by Legal & General, one of the UK’s most trusted brands.
“It is a strong endorsement of our model following significant investment in people, infrastructure and governance; and marks the culmination of nearly two years of work to simplify our capacity structure and enhance the Pen proposition to deliver sustainability and security to our customers and distribution channels. Indeed, it places Pen on a far stronger platform and will allow us to drive profitable growth, both organically and through further acquisitions.”
Cheryl Agius, CEO of General Insurance for Legal & General, said: “Legal & General is delighted to deepen our strong partnership with Pen as it continues to evolve its business and become the leading virtual insurer in the MGA sector. The alignment of Legal & General’s capacity alongside the expertise of Pen provides us with the perfect fit as we look to expand our thinking and help to deliver great products and services to Pen’s customers.
“We are firmly committed to the partnerships sector and the extension of the relationship with Pen supports Legal & General’s strategy to work with the right partners to bring innovative and exciting insurance solutions to market.”
For further press information, please contact:
Lynn Rouse, External Communications, Pen Underwriting
+44 (0) 20 3425 3416
Notes to Editors:
Pen Underwriting is a multi-class, multi-territory managing general agent (MGA) that operates as a virtual insurer, meaning it can fulfil all the typical functions of an insurance company — from sales, distribution, pricing and product innovation through to claims, analytics and governance — except carry risk.
Pen Underwriting has four divisions — Commercial, Specialty, International & Financial Lines and Volume — offering a wide and growing range of specialisms from e-Solutions and delegated authorities for volume business through to specialty products with individual underwriting for hard-to-find placements. With a national branch presence across 15 locations, more than 350 insurance professionals and generating more than £500m GWP, Pen Underwriting represents one of the largest underwriting agencies in the UK.
For more information see www.penunderwriting.co.uk