Steven Crabb, CEO Insurance Services, Davies Group believes the year ahead will enable the company to deliver in its aspirations to create a truly global footprint and one that reflects the needs of our growing client base.

The (re)insurance market heads into 2024 in a positive frame of mind and as a business at the heart of the sector so does Davies.

Rates continue to be positive in the majority of classes and the outlook is that the strong rating cycle will be maintained. It comes against a backdrop of a year where there were not any significantly above average single events which had the capability to truly test the market.

That is not to say that there were and are no headwinds. New and emerging risks continue to affect insureds and with them comes a demand for new types of cover for new perils. The industry is renowned for its long-held belief that with adversity comes opportunity, and opportunities will present themselves in the coming months ahead.

The upward rate movement of the last few years, particularly in the US, has contributed to a rapid growth in the demand for captives and captive management. In our ongoing efforts to meet the needs of our clients we have invested in building our operations in Guernsey to reflect the opportunities that the use of captives is creating for our clients. As such we need to be in a position where we can support their ambitions.

Our strategy for 2024 is to continue to enhance our global footprint as our clients look beyond national borders for growth. The past year has seen Davies open its operation in Singapore to enhance our capabilities in Asia, continue our investment in the United States and begin creating a presence in Dubai, as the Middle East sees a rapid growth in its insurance markets.

Like the industry itself, we cannot afford to stand still. We are continually asking ourselves questions such as “how can we help our clients set up their operations in Bermuda?”. Therefore, 2024 will see the continued roll out of our services and platforms globally.

It is clear that entrepreneurs and investors remain interested in the MGA sector. We are continually told that the growth in MGAs will start to falter, but each year we have seen the momentum continue. What has been striking in recent months is the fact that people with bigger budgets are investing in MGA start-ups.

Our Asta operation continues to go from strength to strength. With control of £2.6 billion of capacity, Asta will be one of the Lloyd’s market’s biggest managing agents for 2024. The work to enable the creation of captive syndicates at Lloyd’s plays to Asta’s strengths and the expertise it can deliver.

We are able to offer a compelling narrative to syndicates in terms of what we can deliver as a group, and we will continue to communicate that message to the market.

From Lloyd’s, Bermuda, Singapore, the US, and Guernsey there is progress and momentum for the business and a positive outlook for the year ahead. We are keen to be a business that supports the creation of new markets for our clients. As such we have been working with regulators to ensure that markets understand the benefits of the MGA model and how best it can be accommodated into their insurance framework.

Our clients are increasingly looking at new jurisdictions in which to operate. As a business we have to ensure that we are across all the countries they want to access and have the capabilities to deliver the level of services and support on which we have made our name.

However, we recognise that any strategy for growth must be built on solid foundations. Whilst we are keen to drive our international growth we remain fully committed to the geographies and the clients which we have served so well for so many years.

We enter the new year with strength and determination. The strength that has been at the heart of everything we have done for so long and enhanced by our performance and the additions we have made in 2023. Alongside that is our determination to build a business that reflets the ambitions of our clients and that of the fast growing regional insurance and risk centres which are keen to create solutions to meet the growing demand from rapidly developing economies and markets.

If you would like to continue the conversation, get in touch with Chief Executive Officer, Steven Crabb at steven.crabb@davies-group.com