U.K. underwriting group buys Toronto-based insurer

Accelerant Holdings has entered into the Canadian market with a share purchase agreement that includes the parent company of Toronto-based Omega General Insurance Company.

Accelerant is a London, U.K.-headquartered underwriting group that works exclusively with MGAs and program administrators in the United States and U.K. The share purchase agreement between Accelerant and Till Capital Corporation means Accelerant will acquire from Till Omega Insurance Holdings, Inc. (OIH) and its two Toronto-based wholly-owned subsidiaries.

Those subsidiaries include property and casualty insurance carrier Omega General Insurance Company and Focus Group Inc., a consulting and projecting management business that services local and international P&C insurance clients (together with Omega General Insurance Company and OIH, the Omega Companies). Omega General offers customized insurance solutions, including fronting and run-off services for insurers/reinsurers, within the Canadian marketplace.

Omega General’s chairman (and previously, CEO) Phil Cook has been in the insurance industry since the 1960s, and presents the popular annual Industry Trends & Predictions events for the Insurance Institute of Canada.

Accelerant will pay Till an aggregate purchase price of 1.15 times the aggregate book value of the Omega Companies (approximately Cdn$13.7 million as of Mar. 31, 2021), in exchange for all of the issued and outstanding shares of OIH, according to a June 21 press release from Till Capital Corporation.

Completion of the transaction is subject to approval from the Office of the Superintendent of Financial Institutions, the TSX Venture Exchange, and certain other customary consents and provincial insurance regulatory filings.

“If approved, the acquisition will mark Accelerant’s entry into the Canadian market,” the release said, adding that Accelerant was founded in 2018 by a team of insurance industry veterans to support managing general agents and program administrators, initially in the U.K. and Europe. Backed by private equity firm Altamont Capital Partners, Accelerant has made a number of strategic investments and acquisitions. It entered into the U.S. market in December 2020.

Accelerant’s MGA focus is on serving the needs of small and medium-sized businesses, with a particular emphasis on property & casualty insurance.

“We are excited by the opportunity to partner with Omega and enter the Canadian market and accelerate our efforts to improve transparency and outcomes in commercial insurance around the world,” said Jeff Radke, CEO and co-founder of Accelerant. “We look forward to expanding Omega’s offerings and forging mutually beneficial alliances across Canada.”

Feature image by iStock.com/chaofann