Westfield takes “significant step” in E&S property launch with Argo renewal rights deal
Westfield Specialty has agreed a deal to buy the renewal rights of Argo Group’s US specialty property business, with the recently launched platform led by Jack Kuhn stating the deal will open doors to business as it builds out its capabilities.
The transaction includes Argo’s shared and layered property portfolio, which underwrites catastrophic-focused E&S property coverage through select wholesale brokers.
Argo’s SME property book is not included in the transaction. As part of the transaction several members of Argo’s US specialty property team will have the option to join Westfield.
Westfield Specialty president Kuhn said the deal to expand its book will accelerate its launch into the E&S property space.
“This renewal rights transaction is a significant step in our E&S property launch and commitment to the wholesale property marketplace,” said Kuhn. “We are excited for the opportunity to onboard additional underwriting talent and expertise while gaining a meaningful footprint into shared and layered property.”
This publication revealed in early September that Westfield Specialty had hired Andy Hendrix as executive vice president and Tom Krause as senior vice president from Argo to enter the E&S property market.
Hendrix commented that the acquisition of the Argo portfolio aligns with Westfield Specialty’s strategic approach of short line deployments within target occupancy classes.
“The mix of primary versus excess business is indicative of a stable portfolio that limits volatility,” he said. “We are excited to open our doors to our broker partners and provide fresh capacity into the market through the trusted, talented underwriters we have added over the past few weeks.”
Westfield Specialty will acquire renewal rights on all business effective 1 January 2022. As a part of the transaction, Argo Group will continue to honour and service all policies currently in force.
In a statement, Argo Group’s E&S president Marsh Duncan said the transaction supports the carrier’s ongoing strategy to reduce volatility within its business.
“We are pleased to have reached an agreement that provides a smooth transition for our brokers and insureds,” he added.
The move to sell the renewal rights is the latest by Argo as it continues to reposition its book of business to reduce volatility and improve performance.
Meanwhile, Westfield Specialty has been rapidly building out its platform since being launched with former Vantage and Sompo International global insurance chief Kuhn at the helm.
At the time of the launch the Ohio-based super-regional property casualty insurer explained that the new endeavour will create additional opportunities to profitably grow new customers and strengthen relationships with existing customers.
Early last month Kuhn told this publication that at that stage Westfield Specialty was already putting business on the books in four of the five lines it has entered.
Westfield Specialty has set up in five lines of business so far: E&S excess casualty; financial institutions; commercial management liability; professional lines (including cyber and professional liability); and E&S property.
Kuhn told this publication that Westfield Specialty would look to start writing E&S property business on 1 December, after wind season.
“We don’t really want to lead with our chin so we’re taking the time to make sure that we have everything stood up and ready to go on E&S property from December 1,” he said at the time.