Zurich replaces Axa as AIUA capacity provider

Zurich has signed a long-term agreement with AIUA, a specialist underwriter for agricultural and farm insurance.

The five-year deal with AIUA, which forms part of The Ardonagh Group and is a trading style of its Geo Underwriting arm, is worth £105m of gross written premium over five years and is effective immediately.

Zurich detailed that it takes over from previous capacity provided by Axa.

Under the agreement, Zurich will provide sole underwriting capacity to the North Yorkshire-based insurer for its portfolio which includes farm combined and agriculture motor.

AIUA was acquired by Towergate, now part of Ardonagh, in 2004. In 2020 Geo added to its rural specialist arm by purchasing Rural Insurance.

Strategy
David Martin, Zurich’s head of retail, said: “This deal further strengthens our strategic relationship with Ardonagh and is consistent with our retail strategy. 

“We are continuing to expand and diversify our retail business by building long-term capacity agreements with specialist, high-performing underwriters. AIUA have a long-established expertise in the rural insurance market, and we are delighted to be working with them.”

Derek Coles, GEO CEO, said: “I am delighted to further develop and strengthen our strategic partnership with Zurich, building not only on our successful relationship in agriculture (with The Rural Insurance Group) but elsewhere across the Geo ‘house of brands’.

“Both Geo and Zurich are committed to the specialist agriculture insurance sector, seeing this as a real opportunity for growth, and I’m delighted they have chosen to back our technical knowledge and expertise.”

The deal builds on Zurich’s £700m capacity agreement with A-Plan owned underwriter, KGM Underwriting which was announced last week. The arrangement secures Zurich’s solus capacity, over a five-year term, for KGM’s motor portfolio.

For all the latest industry news direct to your inbox, sign up for our daily newsletter.