Ryan Specialty to acquire Castel Underwriting to bolster global insurance presence

Ryan Specialty (NYSE: RYAN), a renowned global specialty insurance firm, has made a significant move by signing a definitive agreement to acquire Castel Underwriting Agencies Limited, a Managing General Underwriting (MGU) platform. This acquisition from Arch Financial Holdings (UK) Limited and its minority shareholders marks a pivotal expansion for Ryan Specialty, enhancing its portfolio in the specialty insurance sector.

Ryan Specialty Expands Its Global Footprint

Founded in 2014, London-based Castel Underwriting Agencies Limited, with additional offices in the Netherlands and Belgium, is composed of thirteen unique MGUs. Each MGU specializes in a specific product niche, covering a range of specialty lines including Transactional Liability, Renewable Energy, Construction, and Marine. This acquisition significantly bolsters Ryan Specialty’s existing underwriting expertise and extends its geographic reach, particularly in the UK and European markets.

Patrick G. Ryan, Founder, Chairman, and CEO of Ryan Specialty, highlighted the strategic importance of this acquisition. “Castel is a first-class organization with a history of exceptional performance, including underwriting profit and growth. Integrating Castel into Ryan Specialty expands our UK and European footprint in delegated authority. The lines of business underwritten by these MGUs are both complementary and accretive to our firm,” he said.

A Synergy of Underwriting Excellence

Miles Wuller, President and CEO of Ryan Specialty Underwriting Managers, commented on the acquisition’s strategic fit. “Mark and the Castel team have built a remarkable business. Many of Castel’s MGUs are recognized as market leaders in their distinctive niches, attracting support from some of the highest-quality capital in the industry. This acquisition is a major step forward in our international expansion strategy,” he noted.

Mark Birrell, CEO of Castel, echoed these sentiments, emphasizing the alignment in business philosophy and the opportunity for continued growth. “Joining forces with Ryan Specialty is an exciting development for us. We share a commitment to attracting and nurturing top talent in the industry, ensuring our MGUs continue to excel,” he stated.

Hugh Sturgess, President and CEO of Arch Insurance International, also acknowledged the strategic fit. “Under Mark’s leadership, Castel has thrived in a competitive market. Ryan Specialty is an ideal partner for Castel’s future growth,” he said.

Ryan Specialty’s Growth Trajectory

Discussing Ryan Specialty’s acquisition strategy, Patrick G. Ryan elaborated on the company’s growth approach. “In 2023, we have expanded our total addressable market, both organically and through acquisitions, adding over $140 million in revenue, including Castel,” he revealed.

Castel generated approximately £35 million in operating revenue for the 12 months ended November 30, 2023. The terms of the transaction were not disclosed. The acquisition, expected to close in the first half of 2024, is subject to regulatory approvals and customary closing conditions.