The equipment leasing and asset finance market in North America is a highly competitive one, but for UK-based specialist insurance provider Acquis, establishing a presence in this critical market is the next natural step to growth.
That’s according to Brian Madison (pictured), Acquis’ managing director for North America, who is heading the expansion.
Acquis specializes in insurance for equipment leasing and asset finance companies. Its products are designed to reduce portfolio risk and generate significant non-interest-bearing fee income by providing software, resources, and expertise to ensure leased assets are fully protected from the start of the finance agreement.
The company launched its products and services in the US last month with the intent to serve all 50 states. A launch in neighbouring Canada is also in the books “within a year,” according to Madison.
“We’re definitely going to be in all 50 states, and we plan to move to Canada, as well. It has to be staged,” Madison said.
“We already have partners lined up [in Canada]. So, we want to get the US operational and make sure we’re getting the deals and managing them well.”
Since starting in the UK in 2009, Acquis has grown to support more than 120 finance and leasing businesses in 17 countries across Europe. Its customer base includes global brands like Xerox, BNP Paribas, and Siemens.
Acquis’ US operation will be headquartered in Philadelphia, Pennsylvania, and Dallas, Texas. Its book of business will include a wide range of assets across industries such as IT and office equipment, agriculture, manufacturing, and renewable energy.
Madison spoke to Insurance Business about getting their foot into the attractive but highly competitive asset finance market in the US.
“It’s somewhat of a natural evolution for the company,” he said. “We’ve developed a proficiency in this market, and we’re now considered a market leader in many respects.
“With our success of entering new markets, our demonstrated competency, and the way people see our value proposition, we felt there was great growth potential. We’ve also had conversations with our global customers where they asked us to come into the [North American] marketplace and serve them here,” Madison said.
He described the asset finance market in the US as a “duopoly” of highly embedded players.
“There’s a limited number of competitors in this space,” he continued. “We see a lot of opportunity for lessors to rethink their equipment lease insurance program and ensure that it gives them the highest levels of service and the right types of coverage.
“There’s an excess of a trillion dollars in equipment, financing and leasing that takes place here. It’s a huge market, and there’s plenty of room for us.”
What will differentiate Acquis as a new market entrant? According to Madison, it’s custom solutions and exceptional customer service.
“I think we have a very solid value proposition,” he said. “We deliver superior customer service, tailored insurance solutions to meet lessors’ needs and advanced systems capabilities.
“We’re independent of any single insurance insurer. So, we have the flexibility to give the lessors the right program.”
Ultimately, opportunity and timing aligned for Acquis to launch in North America.
It was acquired by NSM Insurance Group, a global specialty insurance firm, earlier this year. The support from its parent firm, backed by private equity from the Carlyle Group, helped Acquis swiftly launch into the market.
“So, you’ve got NSM’s resources, expertise in the US market, and licenses across all the states, combined with Acquis’ expertise in this specialty marketplace with only a few players,” Madison said. “It all came together in a fortunate way, and we’re excited about the opportunity.”
Madison is also confident that Acquis’ extensive experience in equipment leasing and asset finance will pave the way for a smooth Canadian expansion.
“We have the proficiency to be in many countries. So, it’s not a huge hurdle for us to be able to step into new markets,” he said. “Canada has a slightly different regulatory environment, so there’s a different approach to go to market.”
What are your thoughts about Acquis’ expansion in the US and Canada? Tell us in the comments.
