Specialist MGA CFC is in the midst of a significant international expansion, with new offices, product launches, and a major refinancing effort. At the centre of these moves is group chief executive officer Louise O’Shea (pictured), who spoke with Insurance Business about the drivers behind CFC’s growth, its approach to emerging risks, and what the future might hold for the business and its ownership.
CFC’s recent expansion has seen the company establish a direct presence in the US, Canada, Australia, and continental Europe, supplementing its long-standing London headquarters. O’Shea says the shift is about more than just geography. “We realised that we can continue to do things from London, or we can add to that,” she said. “And we can have people in these different geographies who can get closer to our clients, who can reach clients that we can't necessarily reach from London, who can give more real-time service to those customers as well.”
The company now operates in 90 countries, with nearly half its business originating in the US. Offices in Madrid, Barcelona, Amsterdam, and Belgium mark a push into continental Europe, while the acquisition of Solution Underwriting in Australia represents a rare inorganic move for a firm that has largely relied on organic growth. “Acquisitions are challenging generally, but you reduce the friction and the points where it can go wrong with that combination,” O’Shea said of the Australian deal, which she describes as a strong cultural fit.
CFC’s expansion has been supported by a recent US$1.7 billion debt refinancing, a move O’Shea says was aimed at reducing the company’s cost of capital. “We reduced, bought back some equity, reduced our cost of capital because the debt was cheaper, so that was a very simple economic reason. It was fantastic, we had a lot of support from the lending community and we’re very grateful for that.”
Ownership of CFC is currently split between private equity and management, with a significant employee share scheme in place. O’Shea says broadening employee ownership remains a priority: “One day I have an ambition for every single member of CFC to own shares.”
As for a possible public listing, O’Shea says all options remain on the table. “Yes, there will be an investment event for CFC at some point in the future. Is it an IPO? Is it another private equity investment? Is it another route? To be honest, the business is... very resilient, very high growth, very special. I would never be complacent and I'd always be focused on making sure that that is the case every single day.”
She adds that any decision on the company’s future ownership structure will be made with all stakeholders in mind. “If I made a decision based on what I want personally, then I'd be in the wrong job,” she said, “because it's about what's right for the business.”
While CFC is still best known for its cyber insurance products, O’Shea is keen to highlight the company’s broader offerings having been diversified across specialty insurance for more than 20 years with over 60 products across 30 lines of insurance. “It's something that people tend not to have necessarily, because we're so well known for cyber, they don't necessarily think about us for all of our other products and services,” she said. She also points to recent efforts in areas such as carbon delivery insurance - a product developed in response to growing demand for solutions tied to climate change and sustainability. “Carbon delivery risk is something that has never been covered properly by our industry,” she explained. “This risk is a major blocker to the safe growth of that market, so we created a brand new product to address that problem.”
O’Shea says the company’s approach to insuring carbon risks is grounded in research and close collaboration with brokers and clients. “We spend a lot of time identifying the really solid projects and saying we'll offer insurance over these, which has got the benefit of meaning that the money gets funnelled to the ones that actually will make a difference.”
O’Shea is focused on ensuring CFC supports businesses with the full breadth of its product offering, as it continues to innovate and expand coverage. “We're recruiting, in all our geographies, senior representatives of those different products and then it's about time and talking and getting out there and sitting with our brokers, who we love, and getting them to know everything that we're doing,” she said. “Our brokers really value us for all of our different products, but it's probably more the broader market perception and talking to people like you, for example, and making sure you're aware.”
She says there is no single campaign or announcement that will shift perceptions overnight. “I don't think it's a big bang,” she said. “I think it's certainly not an advocate campaign, but I think it's just something that happens over time.”
With new offices, a growing product portfolio, and fresh capital, CFC is positioning itself for continued growth in a competitive market. O’Shea’s focus remains on building a business that is both agile and resilient, with an eye on immediate opportunities and long-term sustainability. As the company weighs its options for future investment and ownership, all eyes will be on how CFC navigates its next phase - and whether its expansion strategy can deliver on its global ambitions.
