Phoenix Specialty, a construction-focused managing general agent (MGA), has announced it has secured additional A+ (S&P) rated capacity to complement its existing AA- (S&P) rated backing from AXA Insurance UK.
The London-based MGA said the move strengthens its ability to support brokers across its UK contractors' all risks (CAR) and contractors' plant & equipment (CPE) propositions. The expanded capacity increases Phoenix Specialty's underwriting appetite and flexibility, with probable maximum losses of up to £50 million now available on a case-by-case basis for both annual and single project risks.
The capacity expansion comes amid shifting dynamics in the UK construction insurance market. Standard four-walls CAR premiums declined by around 20% in mid-2025, according to Aon's UK Insurance Market Outlook, a trend attributed to growing underwriting capacity entering the market.
Complex engineering risks, however, have been priced flat, with underwriters exercising greater caution. The increased competition has encouraged product innovation and customisation, particularly in segments such as SME construction.
In addition to the UK capacity expansion, Phoenix Specialty has secured Lloyd's capacity support on a prior submit basis. This enables the MGA to consider Erection All Risks (EAR) business globally within Lloyd's of London-approved territories.
The EAR proposition will offer capacity of up to US$27 million in total insurable value. Appetite spans multiple sectors, including steel, cement, mineral processing, breweries, bottling plants, dairies, semiconductor and pharmaceutical facilities, and data centres.
These developments follow the launch of Phoenix Specialty's Global CPE proposition in mid-2025. That offering focuses on annual renewable business and is available on both a direct insurance and facultative reinsurance basis.
Tim James (pictured above), CEO of Phoenix Specialty, said the additional capacity represents a milestone for the company.
"This is a significant milestone for Phoenix and gives us further opportunity to expand our offering and better support our broker partners," James said.
James added that the company has had a strong start to 2026, with several projects in development. He noted that the team remains focused on working closely with broker partners to grow mutual accounts.
