New private equity backers to fund expansion via takeovers as well as new locations and services.
Chief executive Bob Darling and the management of Coversure Insurance Services Group have completed a management buyout backed by private equity firm Livingbridge.
The deal covers the insurance broker franchise, online wholesaler Policyfast, specialist underwriters CUL and software house Datamatters.
Coversure was founded by Mark Coverdale in 1986.
It started with one office in Huntingdon and has grown organically to have over 90 offices across the country with £116m of gross written premium.
Policyfast delivered GWP of £42m and CUL achieved £9m in the financial year ending March 2018.
The deal is subject to regulatory approval and due to complete later this year.
At that point Coverdale, along with fellow shareholder directors including John Hooper and Kevin Sinclair will retire from the business.
They had already handed over day to day control as Insurance Age revealed last year.
Backers
The new backers Livingbridge previously invested in Kingsbridge Risk Solutions. The investor, then known as ISIS Equity Partners, bought the broker in January 2014 but swiftly sold Kingsbridge to Dunedin in July 2016.
According to Coversure, the mid-market private equity firm has invested in over 100 growing businesses in the last twenty years and will work closely with the management team to expand the franchise operation via acquisitions, new locations and the services offered.
It added that further growth will be delivered by extending the product range, accessibility and investment in technology.
As part of the deal Tim Wright will join Coversure’s management team as non-executive chairman. Wright was previously head of corporate risk and broking at Willis Towers Watson and, before that, chief executive of Willis International.
Growth
Coversure’s Bob Darling, who joined the business in 2009 and became CEO in 2017, commented: “The management buyout is great news for all concerned.
“It will allow us to invest in the business and offer even more customers and brokers the high standards of service for which the group has become renowned.
“Having Livingbridge as our investor and Tim as our chairman will enable us to explore new opportunities and give us the impetus we need to accelerate our growth, both on and off the high street.”
He concluded: “All our stakeholders, brokers and staff can look forward to an exciting period of growth and development that I feel will be to the benefit of all.”
The deal is set to complete later this year, subject to regulatory approval.
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