Short introduction Meet Simon Glairy, a distinguished expert in insurance and Insurtech, with deep expertise in risk management and AI-driven risk assessment. With years of experience navigating the complexities of the London Market, including the operations of Lloyd’s brokers and managing general agents (MGAs), Simon offers unparalleled insights into the strategic moves shaping the industry. In this interview, we explore the recent divestiture of Samphire Risk by Blackthorn, diving into the motivations behind the sale, the reallocation of resources, and the evolving landscape of specialized risk sectors. Join us as we unpack the broader implications for market players and the future of advisory and insurance services.
Can you walk us through the key reasons behind Blackthorn’s decision to divest Samphire Risk at this particular moment?
Certainly. Blackthorn’s decision to sell Samphire Risk appears to be driven by a strategic need to streamline their focus. From what I understand, the timing aligns with a broader repositioning effort, especially after their rebrand from CHC Global. The market for specialist MGAs like Samphire is heating up, with strong investor interest in niche, high-growth areas. Blackthorn likely saw this as an opportune moment to realize value from a successful subsidiary while the segment is expanding rapidly. It’s about capitalizing on market dynamics and ensuring they can redirect resources to areas where they can drive deeper impact.
How does this divestiture fit into Blackthorn’s long-term vision for their business?
This move is a clear signal that Blackthorn wants to double down on their core strengths as a global risk advisor and Lloyd’s broker. By letting go of Samphire, they’re not just shedding a subsidiary; they’re refining their identity to focus on advisory and insurance services, particularly in complex areas like malicious risk and hostile environments. Long-term, this allows them to build a more differentiated position in the market, where they can offer specialized expertise rather than spreading themselves across too many ventures. It’s a classic case of sharpening the spear to penetrate deeper into high-value segments.
Blackthorn mentioned reallocating capital and resources post-sale. Can you explain what this might mean for their future direction?
Reallocating capital and resources typically means redirecting financial and operational focus toward priority areas. For Blackthorn, this likely involves bolstering their advisory capabilities and expanding their footprint in insurance services tied to high-risk sectors. Think of it as reinvesting the proceeds from the sale into talent, technology, or market expansion initiatives that align with their core mission. It’s about fueling growth where they can add the most value, whether that’s through enhanced client solutions or deeper specialization in underserved risk categories.
What specific areas of growth do you think Blackthorn will prioritize with these freed-up resources?
Given their stated focus, I’d expect Blackthorn to channel resources into malicious risk and hostile environment sectors. These are areas like cybersecurity threats, geopolitical instability, or even physical security risks in volatile regions—segments that demand tailored advisory and insurance solutions. They might invest in advanced risk assessment tools, possibly leveraging AI to better predict and mitigate these threats, or build out teams with niche expertise. The goal would be to become the go-to broker for clients navigating these complex, high-stakes risks.
The sale is part of a strategy to focus on advisory and insurance services. Can you elaborate on how this focus sets Blackthorn apart in a competitive market?
Absolutely. In the London Market, differentiation is everything. By honing in on advisory and insurance services, Blackthorn positions itself as a trusted partner for clients facing intricate risks, rather than just another player in a crowded field. Their emphasis on malicious risk—think cyber threats or intentional harm—and hostile environments allows them to offer bespoke solutions that generic brokers can’t match. This focus lets them build deeper relationships with clients, provide actionable insights, and ultimately command a premium for their expertise. It’s a smart way to carve out a distinct niche.
Blackthorn’s rebrand from CHC Global seems tied to this divestiture. How do you see the sale reflecting their new identity?
The rebrand to Blackthorn was likely about signaling a new chapter, one focused on clarity of purpose. Divesting Samphire Risk fits into that narrative perfectly—it shows they’re willing to let go of non-core assets to align with a sharper, more defined mission. The new identity seems to emphasize leadership in risk advisory and brokerage, and offloading an MGA, even a successful one, reinforces that they’re not trying to be everything to everyone. It’s a bold statement that Blackthorn is about precision and expertise, not just scale.
Julian Vero described the sale as a ‘timely decision’ to realize value. What do you think made the timing so critical here?
Timing in these deals often comes down to market conditions and internal readiness. For Blackthorn, the MGA space, especially in emerging risk sectors, is seeing a surge of investor interest right now. Samphire, operating in malicious risk, probably hit a sweet spot in terms of growth and valuation, making it an attractive asset to sell. Internally, Blackthorn may have reached a point where they felt Samphire had matured under their stewardship, and now was the moment to extract value while shifting focus to their own growth cycle. It’s a balancing act of maximizing return and strategic alignment.
There’s mention of a continued commercial relationship with Samphire after the sale. What might this partnership look like in practice?
A commercial relationship post-divestiture often means maintaining some level of collaboration without the burden of ownership. For Blackthorn and Samphire, this could involve referral agreements, where Blackthorn directs certain clients or risks to Samphire’s MGA capabilities, or joint product offerings in overlapping areas like malicious risk. It might also include shared market intelligence or co-hosted industry initiatives. The idea is to preserve mutual benefits—Blackthorn leverages Samphire’s niche expertise, while Samphire gains credibility and access through Blackthorn’s broader network.
How do you see the broader trend of divestitures like this impacting the role of Lloyd’s brokers and MGAs in the London Market?
Divestitures like this highlight a growing trend of specialization in the London Market. Lloyd’s brokers and advisors are increasingly streamlining their portfolios to focus on areas where they can deliver unique value, while MGAs like Samphire are stepping up as agile, innovative players in niche segments. This dynamic creates a more fragmented but also more specialized market, where brokers focus on advisory depth and MGAs drive product innovation. It’s a win-win for clients, who get access to best-in-class expertise, but it also means firms need to be crystal clear about their strengths to stay competitive.
What is your forecast for the future of specialized risk sectors like malicious risk in the insurance industry?
I’m quite bullish on specialized risk sectors like malicious risk. As the world becomes more interconnected and threats—whether cyber, geopolitical, or otherwise—grow in complexity, the demand for tailored insurance and advisory solutions will only increase. We’re likely to see more investment in technology, like AI-driven risk modeling, to predict and mitigate these threats. At the same time, partnerships between brokers and MGAs will become even more critical to cover all angles of these risks. For firms like Blackthorn, staying ahead will mean continuously evolving their expertise and tools to address emerging dangers. It’s a challenging but incredibly exciting space to watch.
