Digital underwriting agency Argyle Insurance says it has secured a strategic investment from global firm Correlation, providing capital for its next phase of growth. 

The investment will support enhancement of the technology platform, expansion of product offerings and strengthening of broker partnerships nationwide.

“The partnership with Correlation marks a transformative moment for Argyle Insurance,” Argyle co-founder and MD Anthony Day said. “Their deep expertise in scaling insurance businesses and long-term investment approach aligns perfectly with our vision.”

Argyle founders Mr Day and Matthew Morgan will retain control of the business, with Correlation holding a significant minority stake after investing an undisclosed sum.

“We launched the business just over two years ago and having a strong backer like this allows us to expand our product and reach across the Australian broker market,” Mr Day told insuranceNEWS.com.au.

Argyle, which started out offering SME package, said last month it had struck a carrier agreement with Mitsui Sumitomo Insurance. The capacity provider will take over from WA-based RAC in writing new business from January 1.

Mr Day says the new arrangement increases its SME package limits, and Argyle is talking with Mitsui Sumitomo about additional products.

“We are expanding the size of the businesses that we are looking at and we have plans to launch over the next two years at least four or five new offerings,” he said.

Mr Day says some insurers have shifted their risk appetites and underwriting agencies generally are doing well due to their service and response times.

Insurance-focused investment firm Correlation, which has offices in the UK, Europe, Australia and South Africa, says it targets long-term sustainable growth and prioritises opportunities where it can add value.

Correlation Australia managing partner Doug Laburn says the firm has “absolute confidence” in Argyle.

“Their quality of broker relationships, underwriting, scalable technology stack and service culture makes for a unique offering,” he said.