New Lloyd's insurer, Ataraxia Markets, to underwrite for acquired businesses.Ataraxia Broking, the brainchild of former Brokerbility chief executive Stuart Randall, is setting up a Lloyd’s insurer to exclusively underwrite business for its acquisitions, Insurance Times reveals this week
The new insurer arm, which will be called Ataraxia Markets, will begin underwriting from the Lloyd’s building next month.
Randall, who founded Ataraxia Broking five months ago to snap up small brokers, said it would only accept business placed by its acquired brokers.
Chief executive and founder Stuart Randall said it would only accept business placed by acquisitions of Ataraxia Broking, a company he founded five months ago to snap up small brokers.
Ataraxia Markets is backed by a capacity provider with an AM Best ‘A’ rating, although Randall would not reveal its identity.
“It has substantial capacity. It’ll cater for 99% of all risks that we come across,” said Randall, who is former chief executive of both Brokerbility and Brett & Randall.
“We have found a capacity provider that will provide exclusive and unique capacity to Ataraxia. It is only available to Ataraxia brokers. The main core classes will be provided by this provider, but around the edges of that there will be other providers for specialty classes.”
Ataraxia Broking has a panel of insurers that it can place business with. If the business cannot be placed through the panel, it will pass it on for Ataraxia Markets to underwrite. Occasionally, Ataraxia Markets will pass on uncommon risks to a Lloyd’s broker for placement.
Randall said: “We’re starting to go out into the broker community to talk to brokers, and the response has been very good. We’ve got a good pipeline of people now.
“Everything has worked according to plan so far. We’re cautiously optimistic, and so far so good.”
Adam Boakes is managing director of Ataraxia Markets, while remaining sales director of Ataraxia Broking.
Randall stepped down as chief executive of Brokerbility and Brett & Randall in December last year, following a management buy-out led by chief executive of Brett & Randall and chairman of the Brokerbility Group, Ashwin Mistry.
Randall started Ataraxia Broking to buy smaller brokers with premium income between £2m and £5m, allowing managers to stay on as long as they want.