Principal hits motorbike insurance fast lane

PRINCIPAL Insurance, based in Sale, Greater Manchester, has acquired the motorcycle book of Simply Insurance just days after snapping up a similar company.

The deal comes days after the specialist group confirmed its purchase of iGO4 Partners

It adds a further 500 policies to the 5,000 secured through the purchase of iGO4’s BikeTeam operation.

Both vendors chose to exit the motorcycle niche in order to concentrate on their core businesses, with Simply Insurance now set to focus on its successful fleet, courier, motor trade and commercial lines.

Principal’s chairman Damian Keeling said the new deals illustrated the group’s appetite for striking deals of all sizes as it continues to secure rapid growth. “We’re in the market for niche books which are non-core to general broking businesses, as was the case with Simply, as well as specialist brokers themselves,” he said.

“There are a lot of relatively small specialist books out there which might be underperforming or be draining executive time within wider businesses.

“These may be attractive to us but not considered substantial enough for purchase by larger nationally or internationally backed businesses.  We also look to do quick and clean deals, not contingent on anything so as to minimise cost and complexity.”

He added: “Whilst these latest deals are in the motorcycle sector, we’re looking to complement strong organic growth through acquisitions right across our portfolio.”

He pointed out the group has already bolstered its specialist car operation through the acquisition last October of Marsh’s Kendal-based specialist motor insurance broking business.

The Marsh deal extended Principal’s footprint in a number of specialised motor niches, including the classic, kit, replica, high performance and high value car insurance.

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