The latest expansion news from Principal Insurance in Manchester;
Principal Insurance has acquired Europa Group, the Bristol-based broker best known for its long-established MotorCycle Direct brand.
Manchester-headquartered Principal says the acquisition will place it among the top five intermediaries in the motorcycle market and provide a launch pad for further expansion in the sector.
Financed exclusively through shareholder funds, the deal includes MotorCycle Direct and Europa Underwriting, which trades under the Ridersure wholesale brand. It creates a broking group serving more than 120,000 policyholders and generating over £60 million in annual gross written premium.
“This acquisition not only makes impeccable commercial sense to Principal, but provides Europa with the opportunity to unlock shareholder value while joining a group with the scale and investment capacity to support its next phase of growth,” comments Principal Insurance’s managing director, Dave Bowcock. (above)
“Europa has a fantastic retail pedigree upon which, through investment and our product and technological expertise, we will further build.
“Our strengthened market presence will also enable us to deliver further value to UK motorcyclists, reaching deeper into the niches within what is a highly specialist sector. It’s safe to say too, that this is a development which will invigorate a market that is in need of invigoration.”
He adds: “We are also very excited at the opportunities presented to develop our wholesale operations through Ridersure’s broker network, again adding value to our offer.”
Bowcock confirmed that Principal will retain Europa’s office in Bristol, with the group’s 77-strong workforce largely unaffected.
Europa Group’s Managing Director, Richard Waring, commented: “Having built the business through investment in technology and innovation, we decided the time was right to realise its value and pass it on into safe and trusted hands.
“As a tech-savvy and ambitious specialist broker, Principal is a perfect fit for Europa’s brands. No one better understands the market and how to secure sustainable growth through satisfaction of niche demands and service delivery.”
The Europa deal follows Principal’s purchase last November of Peart Performance Marque Limited’s renewal book and is the latest in an ongoing series of acquisitions.
MORE ACQUISITIONS POSSIBLE
The company has confirmed it is actively looking to complement its organic growth through the purchase of both specialist brokers and books across its key personal and commercial lines.
Aside from motorcycle, these include motorhome and courier insurance, sectors in which the company expects to be a top five player within the next 18 months.
“We’re acquisition hungry and have the funds to fuel that appetite,” says Bowcock. “If you’re looking to exit markets in which we’re active, talk to us.”
For the Europa acquisition Principal’s lead advisors were Matt Noon at Hill Dickinson and Catriona Lang at Dow Schofield Watts. Adrian Young at Hurst Accountants handled tax due diligence.
Europa’s lead advisors were Amy Moriarty at Burges Salmon and Tim Smith at Shaw Gibbs.
Be the first to comment