At the time, Colin Thompson commented: “What we found particularly impressive about ZON Re’s Treaty Reinsurance MGA, is the consistency around the underwriting profitability of the business, with a long, proven, track record of generating significant underwriting profit for its carriers, the byproduct of a high calibre management team with a wealth of experience within the PA Treaty Reinsurance market. We look forward to working together with the team, to grow and build the book going forward.”
He also added: “Following on from the successful conclusion of Nexus’ capital raising process last week, ZON Re’s Treaty Reinsurance MGA fits the model of profitable, proven, niche MGAs, that we plan to target with our ‘buy and build’ strategy, which will deliver significant EBITDA and value to the Nexus group. ZON Re’s Treaty Reinsurance MGA alone will add EBITDA in excess of $3 million to the Nexus Group in 2017.”
This is the third acquisition we have exchanged on or completed in the past month, following the purchase of Equinox Global last week and Vectura Underwriting at the end of June. Combined, these three acquisitions will add GWP of £40 million and EBITDA in excess of £3 million to the Nexus Group in 2017, 3 additional countries and 6 new offices to our footprint, not to mention a number of highly profitable product lines.
Looking forward, our revised financial forecast including all recent acquisitions, will mean that we will have reshaped our business to be one that delivers £160 million of GWP, and income of £30 million and actual EBITDA of greater than £10 million in 2017. On a pro-forma basis, our 2017 EBITDA will be £14 million and there will be more acquisitions to follow.”
Whilst ZON Re’s PA Treaty Reinsurance MGA has been acquired by Nexus, ZON Re will continue to operate a nationally licensed insurance agency and fully digital Third Party Administrator (TPA) platform under its current brand.