PE backed group swoops for police and military insurance businesses
Bspoke Insurance Group Ltd has agreed to acquire the personal lines elements of the Police & Forces Mutual businesses – Police Mutual Healthcare (PMHC) and Police Mutual General Insurance (PMGI).
Leeds-based Bspoke Group, which is backed by private equity investors RCapital Partners LLP & MIG Partners LLP, will acquire 100% of the share capital of the two businesses – subject to regulatory approval – from the Royal London Mutual Insurance Society for an undisclosed sum.
This is the second acquisition for the specialist insurance managing general agent (MGA) group following its buy-out in October 2022.
Products include motor, home and ancillary products such as military kit, personal accident and life insurance.
The transaction will see over 250,000 general insurance policies and around 16,000 healthcare policies transfer to Bspoke Group.
Tim Smyth, Bspoke Group CEO, said: “With a 150-year history, PMHC and PMGI are both highly regarded and trusted names within the police and military sectors, and we are thrilled to have secured their purchase.
“This type of specialist product fits perfectly within the Bspoke Group portfolio.
“It was always our intention to combine organic growth with acquisitions where they have a clear strategic fit to our long term aims.”
Siobhan Barrow, Royal London UK distribution director, said: “We are pleased to have reached agreement with Bspoke Group on this transaction on the general insurance and healthcare elements of the Police and Forces Mutual businesses.
“These are not central to our core business of protection, long-term savings and asset management.
“Customers will be better served by an expert in those GI and Healthcare markets. Central to our considerations has been finding a buyer with the right strategic and cultural fit, and who recognised the heritage of the businesses.”
Smyth added: “It’s a hugely significant deal for Bspoke Group which continues our recent substantial growth in the MGA sector.
“We are taking on a well-run, highly respected business that enjoys a loyal customer base with very high persistency and an experienced, respected team who really know their customers and appreciate the value of high-quality service.
“This is a great time to be a well-capitalised MGA. Large insurers and mainstream players have pulled out of certain lines to focus on core products. This has created a white space for tech-enabled MGA’s like Bspoke Group to step into and fill the gap.
“The addition of PMGI and PMHC to our business underscores our ambition to be a powerhouse MGA brand in 2024 and beyond.”
The PMGI and PMHC businesses are based in Lichfield and Liverpool. 140 staff, including the management team led by Kerry McMahon White, managing director, and Phil Hall, commercial director, are expected to transfer across to become part of Bspoke Group in the New Year.