Cinven, a private equity company, has reached an agreement to acquire a 50% stake in Policy Expert, an insurance company currently owned by a subsidiary of the Abu Dhabi Investment Authority (ADIA).
Financial terms of the deal were not revealed.
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According to Cinven, Policy Expert, established in 2011, has emerged as one of the UK’s fastest-growing insurance businesses.
Operating on a capital-light business model as a managing general agent (MGA), it has offices in London, Milton Keynes, Tonbridge and Motherwell.
The company is said to have garnered more than 1.5 million customers in the UK by offering home and motor insurance products, and is set to expand into the pet insurance market this year.
Cinven has recognised Policy Expert as a “highly attractive” investment opportunity, citing its market position in a sector experiencing growing consumer demand for competitive pricing and personalised service.
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By GlobalDataThe company’s MGA model unifies the economic efficiency of traditional insurers with the agility and scalability of a tech-led approach, Cinven said, adding that Policy Expert’s organic growth and profitability since its inception have been driven by its approach to product development and market adaptation.
Cinven partner and head of the strategic financials fund Luigi Sbrozzi said: “We are delighted to invest alongside ADIA to support Policy Expert in its next stage of growth. Policy Expert is one of the fastest-growing home insurance providers in the UK, with a unique approach to product design and claims management and a strong reputation for customer satisfaction.”
Policy Expert executive chair Steve Hardy said: “We are a forward-looking business that loves to get things done and we are hugely excited to have two supportive shareholders in Cinven and ADIA with us for the next stage of our journey.
“Every new policy sale or renewal adds to our belief that customers are seeking clear, consistent and dependable products and support from the general insurance market. Our smart use of data and people-focused culture has already made this a reality for our 1.5 million customers.”
The acquisition is pending regulatory approvals and the fulfilment of other standard closing conditions.
It follows Cinven’s recent announcement of exclusive negotiations to purchase Finaxy Group, a French insurance broker.
