Nexus targets aggressive M&A growth
Nexus Group is eyeing future M&A deals
to diversify and strengthen its managing
general agency (MGA) portfolio after its recent
acquisition and rebrand of a reinsurance treaty
MGA from ZON Re, which it renamed Nexus
Re, founder and executive chairman Colin
Thompson told Monte Carlo Today.
The deal was finalised in July 2017, with
Nexus acquiring via asset purchase the personal
accident treaty reinsurance MGA from ZON Re.
“A treaty reinsurance MGA is quite an
unusual and rare beast; not many of them
exist,” said Thompson.
Nexus is continuing its M&A growth
strategy, and is considering one or two other
treaty MGAs that it could bolt on to Nexus Re
in the future.
The group is looking to expand its territories
in North America, with the US, Canada and
Central America in mind. It underwrites £200
million ($263 million) of business a year across
Nexus started growing by way of M&A in
2012, and since then has acquired eight other
The group has raised a substantial amount
of money to fund these acquisitions, and has
commitments to more funding.
“We wanted to diversify and grow the
business, by bringing in portfolios that are fully
developed and mature as opposed to making
hires and hoping it works out,” Thompson said.
Whereas many of its competitors have
grown organically, Nexus views this M&A
strategy as a more stable method of growth.
“The reality is that a lot of MGAs fail,”
Thompson said. “We’d rather acquire
MGAs that are established and have
been through those ‘rough patches’, have
developed their business and are successful
in their own right.”
Going forward, Nexus Group plans
to continue its aggressive M&A strategy,
acquiring at least three MGAs per year for the
next five years. n
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