A Liverpool private investment firm has announced a CAD$2m investment into a Toronto-based underwriting firm.
Arete, a multi-family investment office, announced the deal with Canadian firm Shore Underwriting on Wednesday, and said it will mean developing state-of-the-art distribution and service models for the industry in the North American market.
The deal, which was led by Arete’s head of insurance services, Richard Bryant, and partners Mike Fletcher and Matt Cheetham, comes weeks after its recent investment into Manchester’s decision intelligence and AI firm, Peak.
Richard Bryant, head of insurance services at Arete, said: “This is a strategic investment for Arete which sees us expanding our current portfolio within North America, whilst supporting Shore Underwriting to bring state-of-the-art automation to a market sector that traditionally operates with outdated legacy operating systems.
“The transaction combined Arete’s vision of how the insurance sector will evolve, and Shore Underwriting’s knowledge of the territory and sector.
"Our investment will support the MGA to realise its ambitions to become the ‘go to’ specialist professional liability market place within Canada with the ability to offer bespoke solutions and additional coverages such as directors and officers, cyber and general liability."
Arete was launched in Liverpool last year, with its headquarters in the city centre and a second base in Manchester.
Toronto-based managing general agent Shore specialises in insurance underwriting for the emerging technology and professional services sectors in Canada.
Speaking after the announcement, Mike Shore, president of Shore Underwriting, added: “The investment of capital by Arete will see Shore Underwriting able to deliver a professional liability marketplace which operates using the very latest technology.
"We felt that the partnership was right for us given the years of knowledge and experience that exists within Arete’s executive team and its commitment to not only providing capital, but also the network and support that makes organisations like ours a success.
“The global insurance market is constantly evolving and responding to global events. With this new investment, we can ensure we’re well placed to identify market opportunities and act upon them by developing a strong core of expertise and technology to augment our specialist offering.”
