The Ardonagh Group has struck a deal to acquire UK personal lines broker Swinton.
The terms of the transaction will see Ardonagh pay Swinton’s owner, French mutual insurance group Covéa, a cash consideration of around £165mn.
In a statement, Ardonagh said that it intends to fund the purchase price with committed financing from its existing bank group, along with cash from monetizing certain Swinton assets.
Founded in 1957, Swinton is a UK personal lines broker that focuses on motor and home insurance and additional leadership positions in specialist lines including caravan, motorhome and motorbike. It employs around 1,550 people.
In the financial year ended 31 December 2017, Swinton reported turnover of £168mn, in excess of one million customers and 1.6 million live policies.
The statement highlighted that Swinton has invested £45mn over two years in digital capabilities and transformation in response to changing customer buying preferences.
Commenting on the deal, Ardonagh CEO David Ross said: “We are delighted to be welcoming Swinton into the Ardonagh group of companies; a personal lines household name steeped in heritage and another best in class brand which will be the perfect addition to our portfolio.
“The opportunity to share expertise in the development of our digital platforms to accelerate the scale and scope of our offerings is clear to see. Swinton is a hugely complementary, highly accretive acquisition, enabling us to occupy a significant space in personal lines broking.”
Pierre Michel, managing director of reinsurance and international operations at Covéa said: “Over the last few years, Swinton and its executive team have transformed and repositioned the business and now is the right time for it to move into new ownership.
“Swinton will become part of a growing and innovative UK insurance brokerage group, and I am confident that being part of The Ardonagh Group will provide Swinton with a great platform from which to deliver significant benefits to all its stakeholders, including its customers and employees.”