Underwriting agency Castle Insurance has struck a new capacity agreement with international (re)insurer Canopius, drawing a line under its partnership with QBE.

Castle launched a year ago, offering QBE-backed home, contents and landlord cover to the intermediated market.

But from December 1, capacity will switch to Canopius, with the support of its Lloyd’s Syndicate 4444.

Bradley Heath, MD of Castle parent company Sure Insurance, told insuranceNEWS.com.au he sees the deal as the start of a long-term relationship that could accelerate growth and create opportunity.

Castle chief Bradley Heath

“In just 12 months Castle has grown rapidly to provide our broker partners and their clients with an important competitive alternative in the national home and contents market,” he said.

“We are appreciative of the opportunity QBE provided us and the trust they placed in our team.

“Canopius presents new opportunities for the Castle brand. We share a belief in the value of long-term partnership, specialised risk selection and the growth potential of the Australian home and contents market.”

Policy administration and claims will continue to be managed by Castle, supported by internal loss adjusters and Australia-wide team members.

As part of the transition to Canopius, Castle will update its product disclosure statements and underwriting guidelines, in response to broker feedback.

“That’s a positive outcome for brokers,” Mr Heath said. “Clearly, Canopius security, Lloyd's security, is very positive, and with an upgraded product and acceptance rules, that gives brokers a wider opportunity with us.

“We’re now a Lloyd’s coverholder, and that gives us a wider reach for our capacity as well, which [may open up] different products and different opportunities down the track.”

Headquartered in London, Canopius provides insurance solutions across more than 130 countries.

Country head of Australia and Pacific Andrew Ziolkowski says the backing of one of Lloyd’s largest syndicates creates a “strong proposition for long-term disciplined growth”.

“Working with exceptional, aligned partners is critical to our success and we recognise those qualities in the Sure-Castle team,” he said.

Capacity for Sure Insurance – which has offered home and contents, landlord and strata cover to the regional Queensland market since launching more than five years ago – remains unchanged with Pacific International, New India, Chubb and QBE.

Steadfast acquired a 70% stake in Sure in 2023.