Deals: Aventum Buys Mulberry Risk

Aventum, the fast growing International (Re)Insurance Group, currently trading more than USD1.1bn GWP annually, has acquired Mulberry Risk, a boutique consultancy providing actuarial, analytical, exposure and capacity management services to MGAs.

The acquisition is a seminal development in the stated aims and ambitions of Aventum.  It brings an actuarial data revolution to Aventum and to the whole MGA space, introducing never seen before actuarial services driven by automation and artificial intelligence.  Ultimately Mulberry Risk helps MGAs to secure and keep capacity – giving carriers confidence in the quality and accuracy of an MGA’s data, with real time visibility of risks, and making leading actuarial services affordably available to the masses.

The services will be available to Aventum and externally marketed to the wider industry.

David Bearman, CEO of Aventum Group, explains the significance of the acquisition: “Yet again Aventum is breaking new ground on its way to the top.  New digital technologies augmented with actuarial insights, offers real transformational change, and we’re thrilled to be the first to bring this model to the wider market.  With our investment and leadership, and in partnership with other areas of our Group where we see synergies, Mulberry will revolutionise the MGA space. The potential for this has been there for a long time; what we’ve done is harness new technologies, and combined it with innovation and talent to make it a reality.”

Mulberry Risk typically works with MGAs that want to be data led businesses.  Using technology it gives them affordable access to better actuarial insight and services currently the reserve of the largest MGAs and insurers.  Mulberry exists to ‘level the playing field’, giving MGAs an accurate but quick and affordable analysis of portfolios to identify less profitable segments and make informed recommendations to improve overall underwriting performance.  Ultimately it helps MGAs to secure and keep capacity.

David Hughes, CEO of Mulberry Risks, comments: “Joining the Aventum Group and their investment in us is hugely exciting – not only for us as a business, but in terms of what this means for the wider market.  I cannot overstate the potential significance of what we are now able to offer MGAs to help them better compete and indeed outperform incumbent insurers.  From securing the capacity, to helping them retain it for the long term, we’re now a powerful one stop shop for MGAs to help them grow their business exponentially.  We built ourselves to be very different from the legacy of the actuarial consulting world. We embraced technology and used it to create something transformational for the insurance industry.”

As part of Aventum, Mulberry Risk has already been deployed across many areas of the Group.  The team works with the group’s $750m (Re)Insurance MGA Rokstone, one of the largest MGAs in the world, to develop powerful, world first exposure management strategies including new proprietary Cat analysis and underwriting tools.  In partnership with Exponential, Aventum’s global delegated underwriting authority (DUA) service for coverholders and part of its broker Consilium, Mulberry Risk helps MGAs to secure capacity from the market with ground-breaking actuarial support and data science services (reserving, modelling and pricing), all rolled into one powerful in-house package.

Further developments earmarked for the investment include the development of ADA, the world’s first artificial digital actuary, to enable insurers to manage their portfolios of MGAs through the platform and getting near real-time performance metrics based on actuarial methods.

David Bearman concludes: “Acquiring Mulberry Risk is a major boon for Aventum; the proof as they say is in the pudding.  We work with carriers all over the world in niche specialty P&C re-insurance and we’ve added two new carriers in under six months, committed to long term partnerships with us.  That is testament not to any haughty growth intentions that we might talk about, but to the talent of our underwriters now combined with unequivocal hard data-led insight and evidence of disciplined underwriting performance.”

About alastair walker 10175 Articles
20 years experience as a journalist and magazine editor. I'm your contact for press releases, events, news and commercial opportunities at Insurance-Edge.Net

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