Pat Ryan’s managing general underwriting platform is looking to raise more than $200mn to launch a rated reinsurance vehicle that will enable the group to participate on some of the risks it writes.
Speaking to re-Insurance.com the Aon founder and now-head of Ryan Specialty Group (RSG) said a number of the MGA platform’s paper providers had encouraged his team to establish a risk-taking entity and “eat some of [their] own cooking”.
As a result, he said the group was looking to establish a rated reinsurer, which would require more than $200mn in capital.
The source of the capital has not yet been established but Ryan said his firm would approach private equity funds and wealthy individuals.
Once established, the vehicle will write a “modest” quota share of risks underwritten by RSG’s managing general agents to align the group with its paper providers.
It will only participate on the facilities at the request of its paper providers, Ryan stressed.
The group has not yet decided whether the vehicle will be domiciled in its US heartland or offshore and Ryan would not be drawn on when the vehicle is likely to come on line.
The move to create a rated vehicle comes amid a wider push into the reinsurance market by RSG.
Last month the group revealed it had hired two industry stalwarts to launch a reinsurance MGA, RyanRe.
The new platform will be headed up by 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.
The new platform will underwrite both treaty and facultative reinsurance with a focus on property, casualty, and professional liability.
News of the new vehicles follows hot on the heels of Ryan Specialty Group’s revelation that Canadian private equity house Onex Corporation had put $175mn into the business to bolster its growth and M&A strategy.