Nexus Expands into Middle East with Arma Acquisition
Deal News | Jan 02, 2025 | EIN
Nexus Underwriting, a subsidiary of Brown & Brown, has entered into an agreement to acquire Arma Fusion Ltd., the parent company of the reinsurance managing general agent Arma Underwriting Ltd. Arma operates in the Dubai International Financial Centre and specializes in property, energy, liability, consumer, and accident and health reinsurance lines. This acquisition is Nexus' 18th since inception and the first since its own acquisition by Brown & Brown in October 2023. Post-acquisition, Arma will be led by its founder and CEO, Michael Rafter, in collaboration with James Lawrie, Nexus CEO of the UK, Europe & International. The acquisition aligns with Nexus' strategy of expanding its presence in the burgeoning Middle East insurance market, while also enhancing its range of specialty commercial products in terms of underwriting specialization.
Sectors
- Insurance
- Financial Services
Geography
- United Arab Emirates – Arma Underwriting is based in Dubai, and the acquisition highlights the growing importance of the UAE as a hub for insurance and reinsurance industries in the Middle East.
- United Kingdom – Nexus Underwriting, the acquiring company, is headquartered in London, UK, highlighting the cross-border nature of the transaction.
Industry
- Insurance – The acquisition involves companies operating in the insurance sector, specifically focusing on reinsurance and managing general agency services within niche insurance classes.
- Financial Services – The transaction is situated within the broader financial services sector due to the involvement of private equity and investment through Brown & Brown's backing of Nexus Underwriting.
Financials
- Undisclosed – The financial terms of the acquisition deal between Nexus Underwriting and Arma Underwriting were not disclosed.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Nexus Underwriting | Acquirer | Company | A leading independent specialty MGA focused on niche insurance classes, and part of the Brown & Brown group. |
| Arma Underwriting Ltd. | Target Company | Company | A specialty reinsurance MGA based in the Dubai International Financial Centre, known for its expertise in various reinsurance lines. |
| Arma Fusion Ltd. | Vendor | Company | The parent company of Arma Underwriting Ltd., which is being acquired by Nexus Underwriting. |
| Brown & Brown | Parent Company | Company | A major insurance brokerage firm and the parent company of Nexus Underwriting through its holding company Kentro Capital Ltd. |
| Michael Rafter | CEO of Arma | Person | Founder and Chief Executive Officer of Arma Underwriting Ltd., who will continue to lead the company post-acquisition. |
| James Lawrie | CEO Nexus (UK, Europe & International) | Person | CEO of Nexus for UK, Europe & International, who will work with Arma's CEO to develop the business post-acquisition. |
| Stuart Rouse | Group CEO Kentro and Nexus | Person | Chief Executive Officer of Kentro and Nexus group, commenting on the strategic importance of the acquisition. |