Davies Group has moved to bolster its captive capabilities with the acquisition of the captive management & consulting businesses of insurance and reinsurance specialist Citadel Risk.
The move comes as Davies believes the impact of the COVID pandemic on businesses and the insurance industry will see firms increasingly looking at new ways to mitigate risk resulting in a likely increase in interest in the use of captives.
Under the deal Citadel Management & Cedar Consulting will become part of Davies’ Insurance Services practice, led by CEO Steven Crabb. As part of the deal the businesses will be re-branded and will trade as part of Davies Captive Management. Senior Executives Tom McMahon and Mick Larkin, who are based in Bermuda, and Dennis Silvia, based in Ohio, will join Davies, and will report to Nick Frost, President of Davies Captive Management.
The deal marks Davies’ third acquisition this year following the acquisitions of law firm Keoghs, and Codebase8, the automation, modernisation and digital solutions provider and consultancy firm, specialising in robotic process automation (RPA), legacy platform modernisation and product development.
Dan Saulter, (pic) Group Chief Executive of Davies said: “I’m delighted to welcome Tom, Mick, Dennis and the wider team to Davies, and I am thrilled that we have been able to work with Citadel Risk to get this deal done. The businesses have an excellent reputation and bring a wealth of experience and deep captive expertise. Following the very challenging start to 2020 caused by COVID-19, many US and global insurance buyers are now grappling with capacity reduction and rate increases, making it a good time for us to increase our captive capability for those clients looking for alternative insurance solutions.”
Tom McMahon, President of Citadel Management Bermuda said: “We are delighted to be joining Davies and look forward to integrating our team and client base into an expanding and dynamic global business.”