CRC management: Atrium brings UW-focused London platform for product expansion

By David Bull

July 7 - (The Insurer) - CRC Group’s acquisition of Atrium’s managing agency will add an international leg to the company’s underwriting operation with potential to deliver additional products as its new owner supports the Lloyd’s platform’s expansion plans that include the launch of another syndicate.

Sources have told The Insurer that Atrium is currently working on a new Lloyd’s syndicate which is expected to have a different product focus than its established Syndicate 609, which is made up of 14 separate underwriting class teams.

Speaking to The Insurer Monday after the Atrium managing agency deal was announced, CRC Group CEO Dave Obenauer and Bill Goldstein, CEO of CRC Underwriting, declined to comment on Atrium’s plans to launch a new syndicate.

But they did point to opportunities to expand the managing agency’s product offerings, as well as potential growth synergies from access to its new owner’s distribution capabilities, as it supports a business that will continue to operate independently as part of CRC Underwriting.

Prior to the transaction, CRC Group shared ownership with Atrium, with the managing agency’s backer Stone Point Capital a lead investor in the U.S. broker and underwriting platform, following its spin-off from banking parent Truist Financial Corporation.

And Obenauer said that CRC Group had been able to make the move for Atrium following its recently established independence from TFC, with restrictions on international acquisitions under the bank’s ownership no longer in place.

“Having a presence internationally makes a ton of sense and having something in London in particular makes a ton of sense, given how much we already do in London.

“And Atrium was a unique opportunity. It’s a quality business, underwriting focused, and fits really well with how we think about the underwriting businesses that Bill leads. Even though it’s Lloyd’s focused and it’s international, it’s all about the same core ethos around delivering results for carriers,” he added.

Goldstein highlighted the long track record and history of delivering underwriting results to its capacity providers at Atrium, which is led by John Fowle as CEO.

He described CRC Underwriting as a three-legged stool that now comprises Amrisc, Starwind and Atrium, which he said is a “best-in-class underwriting shop”.

“Much like the others, it’ll have an open distribution type model where we’re really focused on continuing to ensure Atrium trades with its current trading partners and continues to deliver innovative products and solutions to its existing trading partners,” said Goldstein.

NURTURING THE BUSINESS

The executive added: “The idea is to nurture the business, let it continue to run independently, and help, if anything, to open up distribution relationships. But this is not changing anything of their secret sauce, it’s more how do we continue to perpetuate the business, grow it, and perhaps look at other product opportunities.”

Goldstein suggested that down the line it is possible Atrium could become the platform to allow CRC Underwriting to develop a “Starwind International” to create a suite of MGAs across Europe and Asia.

“We’ll have to think about that, but this gets us into Lloyd’s, where we have the ability to support a great platform to continue to invest in the business… help them create product… and perhaps down the line launch programs on third party capacity, similar to what we do at Starwind and Amrisc,” he said.

Obenauer said for now the focus will be on continuity and supporting Atrium’s current business plan.

“Our investment in them and excitement about them is their existing team and their existing business plan as they have it. So we don't currently have designs to change any of that.

“This is a really nice add, we love the team, it’ll do what it does very well, and we’re here to support them,” he concluded.