Towergate is to be merged into a £500mn super group of UK insurance companies creating £2.8bn of gross written premiums.
Towergate, which has 4,000 staff across the UK, will be combined with three other firms by its owners HPS Investment Partners and Madison Dearborn Partners. It will continue to trade independently under the same name following the merger. The new business will combine with van insurance broker Autonet, private medical insurance broker Chase Templeton and general insurer Ryan Direct Group.
Towergate boss David Ross will become chief executive of the enlarged group, with Towergate chairman John Tiner taking the same job at the new company.
A name for the new company will be announced by the autumn. It will have an annual income of £500mn and employ more than 5,000 people. Its owners have also added international wholesale insurance broker Price Forbes to the group. Its Chief Executive Mike Donegan will become executive director of the new parent company.
Tiner said, “Today’s announcement demonstrates the tremendous confidence our major shareholders have in the businesses we are bringing together and the opportunities for further expansion. I am very much looking forward to working with HPS, MDP, David and Mike and the board in creating the UK’s leading diversified insurance platform and intermediary with global reach.”