Avid Insurance Services Ltd (Avid) has acquired specialist construction MGA Incorporated Insurance Group Ltd (IIGL)
- Takes the overall GWP to £75m
- Diversification play builds specialist product lines to 12
- IIGL CEO Mike Smith to retain stake in IIGL as whole team moves across
The transaction sees London and Leeds-based Avid take a majority stake in IIGL, increasing the GWP of the business that is currently written each year to circa £75m.
IIGL was founded by Mike Smith, Lyndsey Thompson and Dean Surridge in 2013 and employs 17 staff, based in Hornchurch, Essex. It has a market-leading reputation for providing insurance across the construction sector, as well as property, airside, health and safety and packaged business for SMEs.
Avid CEO Steve Gibson hailed the transaction as "very exciting for Avid and a big step forward towards meeting our medium-term growth ambitions. At a stroke we are adding more diversification by increasing our specialist product lines from 8 to 12."
He added: "IIGL is a highly complementary business for our existing commercial portfolio. They have A-rated insurer support and share our underwriting-led business philosophy. They have built their success in construction by underwriting every risk themselves, which has underpinned their outstanding performance during the current hard market."
Steve explained that the 17-strong team, including underwriting manager Dean Surridge and head of operations Lyndsey Thompson, will all move across as a result of the transaction, and IIGL will keep its brand and office. Dean and Lyndsey will become directors of IIGL and sit on the wider Avid Operational Board.
Founder Mike Smith will step down as CEO but keep a stake in the business going forward, as will the senior leadership team.
Mike Smith said: "This is a great deal for Avid and IIGL. Steve and his team have the same relentless focus as we do on underwriting expertise, deep market knowledge and profitable underwriting driven by data analytics. In a market where capacity is hard won, I am confident that under Steve's leadership IIGL will accelerate its eight-year trajectory of profitable growth."
Steve Gibson added: "Mike has built a first-class MGA which will make a big and positive difference to our market presence, and I am especially pleased he is retaining an interest in Avid."
"Looking ahead, we remain open to acquisition opportunities where they make strategic sense for Avid, and, after recent successful hires (Steve Duxbury and Mike Patchett), we are also keen to attract more specialist underwriters with existing profitable books of business in niche lines who buy into our underwriting-led business model."
Andy Marsh, founder of Beech Tree Private Equity, which invested in Avid in 2019, said: "This is a bold and exciting move for a top-quality MGA and exactly the kind of transaction we hoped for when we invested in Avid. I am confident that all parties will achieve significant value from this acquisition."
The acquisition has received regulatory approval and the consideration is undisclosed.
Avid Insurance is an established managing general agent. It holds both Lloyd's cover holder and broker status placing a wide variety of personal lines and commercial products into the market.
Avid specialises in the social housing sector, leisure, travel and associated insurance and property insurance, together with niche insurance schemes and products. The business is majority owned by Beech Tree Private Equity, and based in Leeds and London.
With its range of Insurer partners, Avid Insurance will be able to produce a bespoke insurance solution to meet clients' specific needs together with ongoing product and management support.