Principal revs up with first acquisition
PRINCIPAL Insurance, the ambitious south Manchester firm chaired by financial services entrepreneur Damian Keeling, has made its first acquisition.
Principal has acquired a niche motor insurance broking business based in Kendal, Cumbria, from international insurance and risk management company Marsh, for an undisclosed sum.
The Kendal-based team of six, including general manager Kat Blayden-Byrne, have transferred with the business which will continue to trade from the Cumbrian town, supported by resources from Principal’s Sale base.
The acquisition reunites the team with Principal Insurance chairman Damian Keeling, who owned and managed Peart Insurance Brokers, as the business was originally known, before selling the business to Central Insurance Services in 2008. Central was in turn acquired by Marsh in February 2014.
Whilst the move sees Principal acquiring a niche book of high value, performance and specialist car policies, Keeling says it is the expertise and experience of the Kendal team which is key to the purchase.
He said: “Whilst we’re acquiring an excellent book the real value to Principal of this deal is the specialist knowledge and experience which the Kendal team will bring to our business. They are known throughout the industry as one of the most capable and expert teams when it comes to writing non-standard motor business. This will help consolidate and grow our position in the specialist niche motor markets in which we already have a solid footprint whilst taking us into new specialist territories.”
He said Principal is hungry for more deals, adding: “We began in motorcycles, a sector in which we’re now a strong player, and now offer a portfolio which embraces non-standard cars, vans and motor trade lines. The aim is to complement our impressively strong organic growth with strategic acquisitions in order to build our specialist niches.”
The deal comes as Principal enjoys significant growth with turnover for the current financial year, which ends on October 31st, set to double. Annual premium income, which in the last financial year grew to £3.3m is forecast to rise to £7m.
This has been boosted by growing UK revenues together with income from the firm’s office in Dublin, which opened in April.
