Syndicates at Lloyd's of London have agreed to provide up to £40m of risk capital per policy to back a new managing general agent in the City focused on the private capital sector.
Alpha TR, a specialty insurance MGA, launched on Monday as a Lloyd's of London coverholder offering international transactional risk insurance to the private capital and alternative asset fund sectors. It is backed by AXA XL and Aviva.
MGAs use capital from large insurers to underwrite on their behalf, giving insurers access to specialised product lines without building in-house capabilities.
Most of Alpha TR's premium forecast comes from outside the UK. The firm will provide M&A insurance for secondary fund buyout transactions, tax insurance covering all aspects of international private capital funds, and contingent insurance.
The firm's management team will be led by managing director Richard Taylor-Whiteway, previously a tax lawyer at CMS, a former director of insurance agency Brockwell Capital, and a broker at M&A insurance specialist Liva. Joining him as directors are Dave Luckett, a former corporate lawyer at DLA Piper and Hogan Lovells with senior underwriting experience, and Laurence Tarr, a director at insurance agency CBC and senior underwriter at Brockwell Capital.
Tarr welcomed the launch.
"The opportunity to work alongside two best-in-class transactional risk underwriters, with a significant line from blue-chip risk capital, and supported by SRG, is irresistible," he said.
Taylor-Whiteway said the firm was focused on delivering for clients and capacity providers.
"We look forward to assisting our clients and broker partners with executing their transactions and delivering above-market results for our capacity providers," he said.
MGAs are increasingly tapping into Lloyd's syndicates for specialised lines of cover, and demand for the coverage they provide has increased significantly as the insurance landscape has shifted over the past decade, filling gaps in niche and specialist coverage areas.
