UK General Insurance (UKG) and Precision Partnership Limited (PPL) have become the latest targets in the ongoing consolidation of the UK insurance market after the private equity investor Rcapital Partners LLP (Rcapital) revealed an agreement to acquire a majority stake in the firms.
Under the terms of the transaction, Montague Investment Group will also take a minority stake, in a deal led by the joint UKG and PPL management team of CEO Tim Smyth and CFO Ryan Gill. The acquisition is subject to regulatory approval and the consideration is undisclosed.
UKG, a Leeds-based personal lines MGA, underwrites a wide range of personal lines schemes including property, leisure and lifestyle (such as gadget and cycle). Meanwhile, PPL acts as the support function for several MGAs including One Commercial, Binnacle, and Provego, as well as One Commercial Specialty and One Commercial Private Clients.
Jamie Constable, founder of Rcapital noted that following the completion of the deal, 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 Thompson plc, and founder of Lloyd’s insurer Jubilee, is set to become chairman of the acquired business, subject to FCA approval.
“These are businesses with huge potential,” Constable said. “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 £100 million GWP and employing 140 people.”
In a Press release, it was highlighted that the combined group also benefits from long-term support from two major capacity providers, including insurer Accelerant (rated by AM Best as A- excellent).
Commenting on the acquisition, Lord Marland said the deal was a “major strategic opportunity” for Rcapital and its investors and that the team was confident in the potential of the combined business.
He added: “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.”
Donald Harrell, founder of Montague Risk Capital, added that the deal is the firm’s first since Montague was set up in 2021. The business is excited by its partnership with Rcapital, he said, and looks forward to supporting the wider team in delivering on its ambitious growth plans for UKG and PPL.
Tim Smyth also commented on the acquisition and said the business’s immediate priorities will be focused on bringing the two organisations together and ensuring that the combined service and offering to customers and clients is enhanced as a result of access to broader products, capability, expertise and capacity.
“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,” he said. “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.”