By Chris Munro

May 22 - (The Insurer) - Totalis Program Underwriters will use its recent acquisition of Ches Special Risk as a springboard to establish a broad footprint in Canada, with plans to strengthen the MGA’s position through both organic growth and M&A.

Ches informed clients and partners in early April that it had been acquired by Aon-owned NFP’s underwriting platform Totalis.

The Toronto-based MGA, which is led by president and CEO Gary Hirst, offers more than 300 products to clients across Canada.

According to the company, some of the popular products it offers include coverages for jewellery stores, student rentals, vape shops, high-end homeowners, property, general liability, convenience stores, tattoo and skin art, and welders, among others.

The acquisition of Ches marks the first non-U.S. play for Tom Gillingham-led Totalis.

“Totalis has always been interested in a North American strategy so we’re extremely excited about the Ches acquisition because it represents our entry into the Canadian market with a scaled, industry-leading MGA operating in most provinces,” Gillingham told Program Manager.

“Ches has a seasoned team of leaders and underwriters, excellent domestic and London markets, broad distribution and offices throughout Canada – including a large French-speaking team in Quebec – to deliver best-in-class products and services to brokers,” Gillingham noted.

According to Gillingham, Hirst has built Ches into one of Canada’s largest independent MGAs “by delivering outstanding products and services to broker clients”.

Ches, Gillingham said, “has broad authority and appetite, a skilled underwriting team and an unwavering focus on customer service”.

“The culture and opportunity to grow organically and through acquisition aligns perfectly with Totalis’ North American ambitions,” Gillingham stated.

Totalis has grown its U.S. business to 25 programs which collectively write more than $1 billion of gross premiums.

The company will now work to grow Ches into a greater force in the Canadian market.

“We have ambitious plans to grow Ches both organically and through thoughtful acquisitions of quality MGAs,” said Gillingham.

“Totalis brings broad resources to Ches in areas like IT, actuarial and finance that will really help unlock opportunities in Canada.”

Ches, which launched in 2004, writes its products on capacity provided by domestic Canadian carriers and Lloyd’s. It was appointed a Lloyd’s coverholder in 2009.

Alongside its headquarters in Toronto, Ches also has offices in Ottawa, Vancouver, Montreal, Quebec City and Edmonton.

Following Ches’ acquisition by Totalis, Hirst will continue to lead the MGA.

Indeed, as Gillingham explained, with Ches now part of Totalis, Hirst has been tasked with leading the firm’s growth and expansion efforts in Canada overall.

“Gary has tremendous industry experience and great relationships with brokers and markets that will be instrumental to our success in Canada,” said Gillingham.

“I’m excited to work with Gary and the Ches team to continue the great work they’ve been doing for years,” Gillingham added.

The acquisition of Ches is the latest deal that Totalis has undertaken this year. As Program Manager reported in April, the company moved into the private security and alarm industry sector with a deal for Brownyard MacLean Security Insurance.

Based in Bloomfield Hills, Michigan, Brownyard MacLean offers a range of coverages to the security, alarm and private investigator sectors, including general liability, professional liability, umbrella, workers' compensation, commercial auto and crime.

Those coverages are written on the AM Best A-rated paper of Markel.

More recently, Totalis launched Spotlight Entertainment Insurance, a specialist MGA that provides insurance solutions to ancillary businesses that support production companies within the entertainment industry.

As Totalis noted at the time, Alex Baiseri-led Spotlight has been developed from an existing entertainment industry program that has operated for more than 20 years.

Gillingham said Totalis remains on the lookout for further M&A deals both in its native U.S. and Canada.

“Acquisitions continue to be a significant component of our growth plans in North America,” declared Gillingham.

“We remain very interested in MGA deals that bring underwriting talent, specialty product expertise, broker distribution, and quality carrier/reinsurance partnerships to the Totalis platform.”