David McManus
Artex

After Artex’s acquisition of Chandler Insurance Management, David McManus explains that the company is set for continued expansion both organically and through acquisition

What were the reasons behind the Chandler Insurance Management acquisition?

Chandler is a great example of what we refer to as a ‘tuck-in’ merger. This is where we attract smaller teams, or individuals, to become part of our team in an existing domicile, bringing on their clients and associates.

Chandler has been in this business for almost 30 years. The company has a very stable, high-quality client list, many of which have licences dating back to the 1980s and 90s. Accounts like this have proven their loyalty and worth and as CEO Steve Butler began to think about succession planning, he in turn wanted to ensure continuity of service and long-term security for his valued clients. A merger with Artex immediately achieves that, but also provides access to a deeper platform of services available through our scale and broader geographic reach.

How will Artex benefit from the acquisition? And how will it expand the company’s captive capabilities?

Along with the great book of business, Artex acquires Butler and Beverly Hodkin’s knowledge, expertise and market relationships, adding depth and scale to our talent pool.

Artex now has over 100 captive clients in Cayman, which represents a wealth of knowledge across a wide range of industries and multiple lines of business, ensuring that we continue to build the resources necessary to empower our clients and prospects around the world.

As part of the acquisition, Butler and Hodkin joined the captive team in Cayman. Butler is joining as client services director, while Hodkin will assume a senior account manager role. Both will primarily work on existing Chandler business, but will also contribute to the overall growth of our Cayman operation through their support of our new business development activities.

In 2016, Artex acquired Kane Insurance Management, also domiciled in Grand Cayman. What is it that attracts you to that domicile?

Very few domiciles have been around as long as Cayman. They continue to innovate, but have never diluted their focus on captives. They have a particularly deep understanding of group captives through which they drive healthy annual growth not evident within the publication of new captive formation numbers.

Artex is a leader in the group captive business and Cayman’s prudent, but creative, approach to capitalisation was decisive in choosing to domicile our newest group captive, Command, there in 2016. Beyond groups, Cayman continues to be an important domicile for new Artex captives and we expect to be responsible for around 20 percent of the new licences issued in Cayman in 2017.

This is evidence of the great relationship that our experienced team on the island have with their professional counterparts in Cayman Island Monetary Authority. Chandler’s strong reputation built through Steve Butler and Beverly Hodkin can only enhance that relationship.

Looking ahead to 2018, what plans do you have for your captive offerings? Are you planning any expansions?

Artex will continue to expand both organically and through acquisition. Organically, we bring hundreds of new captive customers to the industry each year through the growth of our group captives, the wide variety of cell captives we offer in multiple domiciles and the formation of new single parent captives. From an acquisition point of view, we’re looking at opportunities to expand geographically in Northern and Central Europe and Asia-Pacific regions, but also hope to do many more ‘tuck-ins’ in existing domiciles of the size and quality of Chandler.

Interviews
The latest interviews from Captive Insurance Times
Features
The latest features from Captive Insurance Times
Jeremy Colombik of MSI and NCCIA chair explains to Becky Butcher that Notice 2016-66 could be detrimental to not just North Carolina, but other domiciles that are home to smaller captives
Alan Fine of Brown Smith Wallace explains how the industry should proceed after the Avrahami court case ruling
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
Dana Hentges Sheridan, general counsel and chief compliance officer at Active Captive Management, provides insight into the differences between business risks and insurance risks
Predicting when interest rates will change is difficult, which is even more reason to maintain a disciplined approach to your investments, according to Stephen Nedwicki of Comerica Bank
Looking ahead to 2018, Phillip Giles of QBE North America predicts continued uncertainty for the healthcare reform
Michael Schroeder of Roundstone explains why transparency, control and cost savings are the secret sauce offered by a medical captive
Attendees of the Guernsey Insurance Forum heard how important it is for different parts of the industry to work together not only to co-exist, but also to collaborate
Captives must demonstrate they are both efficient and cost effective. Colin Freeman and Peter Downey explain what Barclays can do to help
Domicile profiles
The latest domicile profiles from Captive Insurance Times
Tennessee’s governor, commissioner, general assembly and business community have all worked together to create ‘explosive growth’ in the state’s captive insurance industry. Julie Mix McPeak explains more
Newly-appointed chairman of CCIA Michael Maglaras suggests that the future is bright for state’s captive industry
Asset Servicing Times

Visit our sister site
for all the latest asset servicing news and analysis

assetservicingtimes.com
Although the Isle of Man is currently focusing on updating its regulatory framework, Solvency II, Brexit and the Asian market all hold big opportunities for the island
Debbie Walker of the North Carolina Department of Insurance tells Becky Butcher why the state is among 2017’s standout performers
Experts convene to talk to Becky Butcher about the stability that Guernsey represents in a challenging financial and political environment
In an era of increasing uncertainty, Tamatoa Jonassen suggests that the Cook Islands can be a bridge to financial security in a captive
With a dedicated captive plan in place, the Lone Star State is on the rise, says Josh Magden of the Texas Captive Insurance Association
After 36 years of captive business, Vermont boasts a culture of legislative change, and still has a few tricks up its sleeve. Dan Towle and David Provost explain