Leading private equity investor Rcapital Partners LLP (Rcapital) has agreed to acquire a majority stake in UK General Insurance Ltd (UKG) and Precision Partnership Limited (PPL).
Under the terms of the deal, Montague Investment Group will also take a minority stake, in a transaction led by the joint UKG and PPL management team of CEO Tim Smyth and CFO Ryan Gill.
UKG is a personal lines MGA, based in Leeds. It underwrites a wide range of personal lines schemes including property, leisure and lifestyle (such as gadget and cycle).
PPL acts as the support function for a number of MGAs: One Commercial (commercial combined, contractors and property owners), Binnacle (the UK’s largest insurer of holiday parks), Provego (haulage and other transportation risks), as well as One Commercial Specialty and One Commercial Private Clients.
London-based Rcapital provides private investment, commercial expertise and hands-on support to transform and grow businesses. The business has made over 70 investments since it was founded in 2004, but this is its first investment in an upstream insurance asset.
Montague was founded by Donald Harrell in December 2021 and provides private investment into insurance MGAs and other insurance related businesses. Montague is also building in-house Specialty MGAs, combining underwriting talent with technology, data & analytics to deliver superior returns to risk capital partners and equity investors.
Jamie Constable, founder of Rcapital said that, following completion, UKG and PPL will come together under the leadership of Tim Smyth, UK General’s chief executive. Lord Marland, one of the founding directors of Jardine Lloyd Thomson plc, and founder of Lloyd’s insurer Jubilee, is to become chairman, subject to FCA approval, of the acquired business.
He said: “These are businesses with huge potential. Bringing them together under our ownership will enable the combined personal and commercial lines business to scale up significantly and build on a business already controlling in excess of £100m GWP and employing 140 people.”
The combined group also benefits from long term support from two major capacity providers, including insurer Accelerant (rated by AM Best as A- excellent).
Lord Marland commented: “This deal is a major strategic opportunity for Rcapital and its investors and we are confident in the potential of the combined business. We believe the MGA sector is a great investment opportunity and, after a challenging period, UKG/PPL is poised for profitable growth with our support.”
GOING FOR GROWTH
Donald Harrell, founder of Montague Risk Capital, said: “This deal is our first acquisition since we set up Montague in 2021. We are excited by our partnership with Rcapital and look forward to supporting Tim, Ryan and their teams to deliver on their ambitious growth plans for UKG and PPL.”
Tim Smyth said: “With this acquisition and injection of capital, we can look forward to a fresh start for UK General and PPL after a period of significant change for the business.
“We now have a fantastic platform to, make acquisitions, hire talent and grow, backed by this investment from progressive and future-focused owners. I am excited by the opportunity to model the combined group as a niche and specialist schemes player with a relentless focus on profitable, measured growth.”
Tim said that immediate priorities will be focused on bringing the two organisations together and ensuring that service and offering to customers and clients is enhanced as a result of access to broader products, capability, expertise and capacity.”
The deal is subject to regulatory approval and the consideration is undisclosed.
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