Rapid growth and increasing international revenue can introduce significant FX exposure. This case study explores how Marex supported a fast-growing insurance firm in strengthening FX resilience, improving governance, and safeguarding margins.
Overview
Founded in 2019, this specialist insurance firm began in marine insurance before expanding into property, aviation, and casualty. Rapid growth recently attracted private equity investment, and as revenue increasingly came from US dollars, the company needed a strategy to manage its growing exposure to currency fluctuations.
The team engaged Marex to implement a strategy that would mitigate FX risk and support continued expansion into international markets.
Client challenges and FX exposure
Managing US Income Streams
Exposure to volatile GBP/USD exchange rates (from $1.40 down to $1.03 since inception) impacted financial forecasting and planning.
Financial stress from fluctuating margins
Increased USD income created tension and diverted resources from core operations.
Unpredictable USD cash flows
Overseas exposure became harder to manage, creating budget uncertainty.
“We wanted to be more stable and know what we were getting for our U.S. dollars, more secure rather than taking a risk on the market.”Founder and Managing Director Insurance Firm, UK
FX strategy and proposed solution
The company was seeking more than a transactional solution – they needed strategic guidance and a deep understanding of their business. Marex led a consultative process to develop a tailored FX risk management strategy, identifying a target hedging ratio of 60-70% of US dollar revenue. Key measures included:
- Hedging execution
Locked in a rate of $1.25 against a budget assumption of $1.40, generating FX gains from day one
- Value beyond execution
An annual FX report was incorporated into board packs, improving governance perception among stakeholders.
- Integration of MIRA – technology-enabled insight
Marex’s proprietary FX risk analysis platform identified coverage gaps, modelled exposure, and produced board-level reports.
Results and outcomes
Implementing a dynamic FX strategy delivered measurable outcomes:
- Immediate FX gain
Improved budget forecasts through better rate locking
- Strengthened balance sheet
Enhanced ability to forecast future USD income
- Increased boardroom confidence
Governance improvements appreciated at board level
- Strategic credibility
Positioned the business for long-term growth
- Reduced operational stress
Less pressure on leadership and finance teams
- Private equity alignment
Proactive FX strategy impressed stakeholders during due diligence
“I like the regular reporting that Marex put together, which we incorporate into our board meetings. This was an additional benefit that we didn’t really know we needed until we saw it.“Founder and Managing Director Insurance Firm, UK
Key takeaways
More than transactional
Marex worked closely with the client, taking a proactive approach to FX risk management after a detailed consultative process.
Cutting-edge technology with human oversight
Marex combined proprietary tools with expert guidance to deliver a reliable and effective solution.
Strengthening broader governance
While the financial benefits were immediate, a greater level of control strengthened the group’s wider governance, predictability and stability.
Supporting the client through critical growth milestones
The ability to secure fixed exchange rates was crucial to long-term growth and the eventual acquisition by private equity investors.
Realistic approach to FX exposure
Having previously budgeted for a rate of $1.40 to the pound, fixing up to 70% of future dollar income at $1.25 created a more realistic approach to FX exposure and long-term income.
Boardroom confidence
Utilising the MIRA FX risk management platform improved confidence and strengthened relations with company directors.
Conclusion
After years of navigating volatile currency markets with limited protection, the company recognised the need for a structured FX strategy. Marex’s approach not only delivered clarity and control but also enhanced financial stability and governance.
With a clear framework and board-level reporting, the business is now well-positioned to pursue growth without compromising financial resilience.
As the founder and managing director told us:
“We weren’t sure how much to cover or leave exposed, but with Marex’s help and the technology, we’re well covered for the next 18 months – and the board has a lot more confidence in what we’re doing.”
Ready to talk FX?
Get in touch today to see how FX strategy can drive commercial impact for your business.
Work referenced in this case study was completed prior to HCFX Group’s merger into Marex on 1 April 2026.
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