It’s been a rapid 12 months of growth for Avid Insurance Services Ltd. – and now the specialist MGA is looking to take the next steps on the road to success.
This morning the firm declared that it had sold a majority stake to Beech Tree Private Equity (BTPE) in a move it hopes will “accelerate our growth and build on the investment we’ve made during the past year in both people and systems.”
The move, however, means the departure of director and co-founder Gary Edmondson. The business will be run by managing director Stephen Gibson and commercial director John Inwood.
“We have grown significantly in the last 12 months, and this investment will fuel further organic profitable growth and also enable us to acquire new underwriting teams,” said Gibson.
A specialist in travel, social housing and the council leasehold markets, the MGA, which was founded in 2006, has bases in both London and Leeds working as both a Lloyd’s broker and coverholder. It writes more than £40 million in gross written premium.
“Our aim this year is to grow significantly through a combination of building out our existing lines, especially in leasehold, and attracting underwriting teams who have been held back by the recent reductions in capacity and who have unique skillsets and access to distribution and want to be part of the growth story,” Gibson added.
“We have the systems and tools in house, and A rated paper from our insurer partners which together will prove highly attractive for talented underwriters who control niche and specialist books of business, and want to grow. Ideally, we would like to have hired at least two new teams by this time next year.
“BTPE are as ambitious as we are and have deep experience of the sector from previous investments. It was a big move for us to partner with BTPE after 13 years as an independent but we are convinced we have made the right decision, and look forward to working with them to take Avid on the next stage of its growth journey.”
Meanwhile, Andy Marsh, managing partner of BTPE, described Avid as a “stand-out business.”
“The management team has done a fantastic job in building the business to date and we are looking forward to supporting their plans for the future,” he said.
The deal has reportedly received regulatory approval and the consideration is undisclosed.