Optio Group has agreed to acquire Construction Guarantee Underwriters Limited (CGU), an Irish specialist in construction surety and performance bonds, for an undisclosed sum.
The deal gives the independent specialty MGA its first on-the-ground presence in Ireland and adds a long-established, construction-focused book to its European portfolio.
The transaction is part of Optio's broader European growth strategy, following recent purchases of Gardian Marine, S Insurance and AGS Forsikring AS.
Established in 1984 with long-standing capacity support from Hiscox, CGU has more than 40 years of underwriting heritage in Ireland's construction market. The business focuses on construction surety and performance bonds, supporting contractors and project stakeholders with guarantees around contract performance and financial obligations.
CGU is led by directors Kevin O’Brien and Mark Hogan, who have extensive experience in construction surety underwriting. The pair have built a reputation for disciplined underwriting across multiple construction cycles in a sector marked by periods of rapid expansion and contraction.
For Optio, the move adds a specialist surety operation in a country where public and private construction projects routinely use bonds and guarantees to manage counterparty risk. Bringing CGU onto its platform provides an established distribution base and local underwriting expertise at a time when infrastructure and construction programmes across Europe continue to rely on tailored surety solutions to support project delivery and protect balance sheets.
"CGU brings deep expertise and a strong reputation within the Irish insurance market, making it a compelling addition to Option," said Deepak Soni, CEO of Optio Group. "This acquisition strengthens Optio's growing capabilities and demonstrates our commitment to providing exceptional service to key European markets."
CGU's leadership has stressed continuity for existing clients and trading partners, while pointing to the benefits of additional scale and resources under Optio's ownership.
The deal is expected to give CGU access to a wider network and technology infrastructure while allowing it to retain its specialist focus on construction surety. The combination is positioned as a more robust capacity platform for bonds and guarantees, backed by an international MGA with decisions still grounded in local expertise.
The acquisition comes as construction markets across Europe, including Ireland, continue to face cost inflation, tighter financing conditions and elevated insolvency risk among contractors. Against that backdrop, surety products remain a key risk-transfer tool for project owners, lenders and supply chains, with demand supported by public infrastructure programmes and complex private schemes.
For MGAs and carriers, construction surety is typically a low-frequency, high-severity class requiring specialist underwriting, robust credit analysis and close monitoring of project pipelines. Optio’s purchase of a long-established surety MGA such as CGU signals an intention to build scale in technical lines where expertise and local relationships are central to performance.
The transaction also underlines the growing role of MGAs in delivering niche capabilities for insurers and brokers in Europe, allowing capacity providers to access specialist markets through experienced underwriting teams, while distribution partners gain access to tailored products and local market knowledge under a single platform.
