U.S.-based insurance provider to acquire Sutton Special Risk

New York-headquartered insurance services provider Amynta Group has entered into a definitive agreement to acquire specialty insurance managing general underwriter (MGU) Sutton Special Risk Inc.

“The acquisition of Sutton expands Amynta’s offerings in the accident and health market and accelerates growth plans in the Canadian marketplace,” Amynta Group said in a press release Wednesday.

Its growth plans in Canada are focused on the commercial P&C, warranty protection and accident and health markets, but it has “broad interest” in the Canadian market, Amynta told Canadian Underwriter Friday.

Founded in 1978, Sutton offers a broad range of accident and health coverages, including personal accident, disability, critical illness, and specialty coverages focused on professional sports and entertainment. The Toronto-based MGU also offers products for kidnap & ransom, and war risk and terrorism.

“Sutton has built a great company over the last 45 years, with a strong market position and track record of delivering for their clients,” the company said.

Sutton had managed premiums of Cdn$65 million for the 12 months ending Sept. 30, 2023, Amynta Group reported.

Greg Sutton, president and CEO for more than 12 years, will continue to lead the MGU.

“Sutton brings specialty [accident and health] capabilities to Amyntha, expanding our underwriting reach with proven leaders in the market,” said Robert Giammarco, chairman and CEO of Amynta Group.

“Significant opportunities”

“We see significant opportunities to build on Sutton’s strong offering and client-centric approach to expand their business. We are excited to welcome Greg and his associates to Amynta, Giammarco said.”

The transaction is subject to customary closing conditions, including regulatory approvals.

Amynta has more than $3.5 billion in total managed premium across North America, Europe and Australia. As an independent underwriting-focused company, Amynta serves carriers, wholesalers, retail agencies, auto dealers, original equipment manufacturers and consumer product retailers with insurance and warranty protection solutions.

Amynta told CU it has several operations in Canada, including Sym-Tech Dealer Services, a provider of finance and insurance services for the auto industry, and Specialty Equipment Insurance Services, a provider of finance and insurance services for the heavy equipment market.

While consolidation involving MGUs or managing general agents (MGAs) is not as prevalent as brokerage M&A, it’s primed to increase in the future, particularly as private equity focuses on the sector.

Late last month, Aviva Canada acquired Optiom O2 Holdings Inc., an MGA specializing in vehicle replacement insurance in Canada. The Cdn$170 million deal is expected to close in the first quarter of 2024, and will expand the insurer’s capital light businesses, which makes up more than half of its portfolio.

In October, Navacord also announced it had acquired Unity Managing Underwriters Ltd., effective Aug. 1. Based in Toronto, Unity specializes in creditor, life, disability and extended warranty products for personal and commercial vehicles. Unity — which offers MGU, third-party administration, product development, and insurance brokers and consulting services — is well-known for work dealing with clients in the financial sector and automotive dealerships.

 

Feature image by iStock.com/Parradee Kietsirikul