Pen Underwriting today announces a new multi-year strategic partnership with Aviva in support of its personal lines and property owners’ business, which will see Aviva providing capacity for over £100m in premium per annum.
Under the terms of the deal, Aviva will provide 100% capacity across these business lines within Pen’s personal lines division from 1 April 2023 for risks placed with Pen via both coverholders and brokers.
The agreement will utilise Pen’s broad capabilities as a virtual insurer in not only underwriting and distribution but also insight and pricing, risk and governance and claims handling. By empowering Pen with delegated underwriting, pricing and claims authority, the agreement will benefit Pen’s distribution partners, as well as end customers, in a number of ways – including prompt decision-making, enhanced trading efficiencies and bringing new products more quickly to market, while providing first-class security on a long-term basis.
This deal builds on Aviva’s existing partnership with Pen where it currently provides reinsurance capacity for its personal lines business. With this new announcement, Pen will benefit from Aviva’s position as a leading general insurer in the UK, with a strong brand, broad scale and extensive customer and broker insight across its business. Previously, Aviva has outlined its plans to grow the personal lines business by targeting profitable segments of the market and this announcement is part of that strategy.
Jennifer Martin, Chief Underwriting Officer for Pen Underwriting, said: “This is an absolutely fantastic deal for all stakeholders, combining the power of the Aviva brand with that of Pen and bringing together two parties with a shared vision of ambitious, sustainable growth. To have secured long-term capacity for our personal lines and property owners’ business so many months ahead of inception is a huge endorsement of the quality we have built within Pen and our professional approach to capacity management.
“It speaks volumes about the strength of our portfolio, our careful selection of partners and our great underwriting discipline, backed up by our dedicated insight and pricing team that constantly monitors and responds to portfolio performance. Together with Aviva, we have created long-term certainty for brokers, coverholders and their customers alike.”
Jon Santer, MD Personal Lines Broker at Aviva, said: “We’re delighted to enter into a strategic partnership with Pen Underwriting which brings together Aviva’s position as a leading insurer with Pen’s specialist expertise. This deal builds on our strategy to target and invest in profitable segments of the personal lines insurance market and grow our business by choosing specialist provides to partner with.
“As an existing partner, Pen is a great strategic fit for Aviva and this deal will enable us to extend our reach into other property risks and offer insurance products to a broader range of customers. We look forward to working with them over the next few years.”
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