DUAL UK, an underwriter owned by broker Howden, announced on Monday its acquisition of managing general agency International Passenger Protection (IPP) as part of its strategic expansion into the travel insurance sector.

Strengthening Market Leadership in Travel Insurance

With the acquisition of IPP, DUAL UK positions itself as a market leader in the specialized travel insurance sector. IPP, which operates in both the U.K. and Malta, provides insurance coverage to consumers against the risk of insolvency by travel operators. Like DUAL, IPP functions as a managing general agent, underwriting risks on behalf of insurance companies, which ultimately bear the liability for claims. Although the financial terms of the transaction were not disclosed, this deal is expected to significantly bolster DUAL's presence in the travel financial failure insurance market.

"This acquisition adds a strong new product set to DUAL's U.K. portfolio and positions us as the market leader in travel financial failure insurance," said Simon McGinn, chief executive of DUAL UK. "As we look at our growth plans, I also see this as a great opportunity to further build the IPP business."

DUAL UK acquires IPP : Strategic Expansion and Growth Plans

Paul Mclean, managing director of IPP, expressed enthusiasm about the acquisition, stating, "Being part of a large organization will give us access to a network of brokers and capacity to further grow our business." The integration of IPP into DUAL UK is seen as a significant step in Howden's ongoing strategy to expand its underwriting arm, with a particular focus on managing general agents (MGAs).

Howden has been aggressively growing its underwriting division in recent years. In August 2021, DUAL acquired U.S. underwriter Align Financial Holdings LLC for $800 million, creating a $2 billion revenue managing general agent. In 2023, the company continued its acquisition spree by targeting specialist equine racing insurance companies, including the purchases of underwriter Galileo, the bloodstock division of rival Tysers, and the managing general agent David Ashby Underwriting. Howden also secured a majority stake in Australian bloodstock broker HQ Insurance.

Rising Interest in MGAs

The acquisition of IPP by DUAL UK comes amid a surge in transactions involving MGAs. Market intelligence firm MarshBerry reported 23 such deals in 2023, a significant increase from 13 in 2022. This trend highlights the growing interest in MGAs as key players in the insurance industry.