21 May 2014USA analysis

Artex take operations to the next level with acquisition of HIM

Artex Risk Solutions has announced the acquisition of Heritage Insurance Management (HIM), the specialist captive and insurance management arm of Guernsey-headquartered Heritage Group.

The deal creates an international platform of growth for Artex, making it one of the largest captive managers in the world.

Established in 1993 and led by executive chairman Charles Allen and managing director Nick Heys, HIM specialises in the creation and management of innovative and cost-effective insurance solutions, primarily for clients outside North America.

It employs teams of industry experts with extensive capabilities and detailed knowledge of their specialist markets, offering both captive programs that service SME clients as well as solutions geared to the non-US, large and mega-cap multinational arena.

The deal will see Artex expand strategically beyond North America for the first time, with the acquisition of a fully established European-based captive management facility, which will trade as Artex International in due course.

HIM currently has annual revenues of approximately $20 million and just over 100 employees — operating in Guernsey, Malta, Gibraltar and London.

Together Artex North America and Artex International will serve almost 1,000 captive clients, operate from 15 locations with licences in 20 captive domiciles and employ more than 300 captive and alternative risk professionals.

David McManus, president of Artex Risk Solutions, says, "I'm absolutely delighted that Charles, Nick and their great team at Heritage have chosen to join us at Artex. The relationship between our companies goes back many years and this merger represents about as perfect a strategic fit as I can imagine.

Mcmanus continues, “Not only will our combined entity represent one of the largest captive managers in the world but, more importantly, we believe the highly complementary nature of our strengths, geographies and client bases will create a world-class global platform from which we can develop even stronger client propositions.”

“Together our spectrum of expertise can simultaneously service the risk management needs of mega-cap multi-national organizations while also offering the know-how to create innovative captive solutions for small and middle market enterprises — all sourced through an independent network of insurance brokers and other trusted advisors." he concludes.

Nick Heys, who will become CEO of the new international arm reporting to David McManus, adds, “Heritage Insurance Management, as part of the Heritage Group, has grown substantially over the years but reached a stage whereby partnering with a like-minded organisation was necessary to realise its ambitions. Whilst we are sad to be leaving our colleagues at Heritage Group we are delighted to be joining a world-class organisation capable of taking our captive insurance business to the next level.”