Macquarie Insurance Facility (MIF)


Mark Vorbach +44 (0)203 037 5926


mark.vorbach@ macquarie.com


Since 1996, Macquarie has been a leading infrastructure and real asset manager with A$90bn of assets under management across 24 countries. In 2006 Macquarie established an insurance buying programme to deliver purchasing power benefits to the portfolio of Macquarie managed businesses.


Macquarie, jointly with its portfolio companies, is one of the largest buyers of insurance in the world with a premium spend of approximately US$500m per annum.


Through the aggregation of insurance premiums, MIF has been able to offer benefits to the individual portfolio companies that they might not typically have been able to achieve on their own. The benefits include:


i) Highly competitive pricing – discounts on market rates achieved through the concentration of buying power.


ii) Best in class coverage – all major lines of cover available and tailored to meet individual business requirements.


iii) Rate stability – rates can be locked in over multiple years, reducing price volatility.


Mark Vorbach is a Managing Director in Macquarie’s Funds Management Group and runs the Macquarie Insurance Facility (MIF). He joined Macquarie in 2005 and has 20 years’ investment banking and asset management experience. Mark has extensive financial services experience and has held several senior management positions including CEO, North America for WestLB Asset Management and Managing Director, COO for the Equities Division of ING Barings. He also worked at JP Morgan and Warburgs and qualified as a Chartered Accountant with Coopers and Lybrand.


iv) Leverage with claims – strong relationships with insurers and brokers ensures the prioritisation and early resolution of claims.


Lines of cover available through the facility include Property, Liability, Construction, Aviation, Marine and all Financial lines. Policies are individually tailored to the specific needs of the insured and there is no sharing of limits or claims experience. Our partner insurers include Chartis, Zurich, ACE, RSA and QBE.


Track record


The level of adoption by portfolio companies has been very high and 84 businesses now buy their insurance through MIF. The facility has delivered savings of 20-30% across all lines of insurance with total savings in excess of US$85m.


MIF is an open market facility and is easily accessed through any retail broker. No charge is made for obtaining a quote and participation in the programme is entirely voluntary - it’s simply a free option for the insured.


Macquarie has invested in this platform through a captive in Bermuda and a US licensed insurance broker. MIF is now an established presence in the insurance market and Macquarie has developed relationships with many of the leading global insurers and all major brokers.


Success factors To date, 75% of the time that MIF quotes, it wins the business and the facility has a retention rate in excess of 90%. There are several reasons for its success:


Scale and Positioning – Large premium spend, underwritten by a small number of partner insurers. Proactive risk management of the portfolio companies resulting in low loss ratios.


Key Relationships – Strong, direct and senior relationships with insurers and brokers. Portfolio companies recognise the added value that MIF brings and are highly supportive of the programme.


Management – Dedicated team supported by quality management information and systems.


Oversight – Sponsor administered rather than broker managed, allowing portfolio companies to use their broker of choice.


Centralisation – Centralised underwriting where possible.


20 BVCA


Risk and Insurance in Private Equity and M&A 2012/13


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