Ryan Specialty Group has launched a reinsurance managing general underwriter (MGU) called RyanRe, just days after receiving a $175mn cash injection from Canadian private equity house Onex Corporation.
The new MGU is to be headed up by two stalwarts of the industry – Brian Boornazian as CEO and president and Michael O’Halleran who joins as executive chairman.
Boornazian was most recently chairman of Aspen’s reinsurance business and the CEO of Aspen Re Americas.
He announced his plans to step down from the up-for-sale Bermudian in March after the carrier posted a disastrous set of 2017 results.
He walked away from Aspen with a severance payout of some $1.38mn less tax, which represented his highest annual base salary and the average of his bonus payouts between 2014 and 2016.
Meanwhile, Michael O’Halleran spent 37 years building out Aon’s reinsurance arm before retiring from broking house last year.
The MGU will underwrite both treaty and facultative reinsurance with a focus on property, casualty, and professional liability.
News of the new MGU follows hot on the heels of Ryan Specialty Group’s revelation that Onex had put $175mn into the business to bolster its growth and M&A strategy.
“We are thrilled to add Mike and Brian to the RSG family,” Patrick Ryan, founder, chairman and CEO of Ryan Specialty Group said.
“A reinsurance managing general underwriter is a natural evolution for RSG and expands our strategic underwriting management direction,” Ryan added.
“I am thrilled to join with Pat and Brian to create a dynamic diversified underwriting company
that will bring creative solutions to our brokers and clients,” O’Halleran said.
“The opportunity to team with Pat and Mike while utilising the vast and innovative resources of RSG offers a truly unique opportunity to provide high quality, tailored reinsurance solutions to our broker partners and their clients,” added Boornazian.
Discussing the investment from Onex earlier this week, Ryan said: “We are pleased to enter into this relationship with Onex.
“They align with our culture, believe in our team, and support our strategic goals,” he went on.
“Pat is building an outstanding organization comprised of top talent from around the insurance industry and has established clear and ambitious, yet achievable goals,” Onex senior managing director Bobby Le Blanc said of the investment.