ASX-listed insurance firm Ensurance’s UK-based construction and engineering insurance business has received approval to act as a fully authorised underwriting agency.
Ensurance UK – based in London – received Financial Conduct Authority (FCA) approval late last month.
The FCA regulates financial firms providing services to consumers and maintains the integrity of the UK’s financial markets.
“This is a major milestone for EUK as it now means that the company is a fully authorised Managed General Agency (MGA – an underwriting agency) all within less than 18 months since being incorporated,” Ensurance Executive Chairman Tony Leibowitz said.
The approval is the latest in a long list of major milestones Ensurance UK has achieved since being incorporated in August 2016.
The company generated first cashflow at beginning of FY2018 and has so far signed 50 new Terms of Business Arrangements with major clients and brokers. Its targeting signing up 65 strategic brokers.
Establishing the UK office has also allowed Ensurance Group to expand into other major global markets throughout Europe.
Partnering with Swiss Re Corporate Solutions, Ensurance can offer insurance products across UK and parts of EU, targeting construction and engineering contracts up to £100 million.
EUK has also joined up with XL Caitlin to provide construction insurance product to high net worth domestic clients.
The company has also received Lloyd’s of London coverholder approval, allowing Ensurance to issue insurance documents on behalf of Lloyd’s syndicates.
For FY2018, the company expects to generate around $1.4 million revenue, contributing significantly to the Ensurance Group’s cash flow for FY2018.
Shares in Ensurance Group, which also consists of an Australian-based insurance brokerage and IT business, were trading 0.9c higher at 7.9c, up 13 per cent, at noon AEDT.