Capita ramps up MGA strategy with stake in Infinity

Capita Insurance Services has concluded a transaction to finance the development of Infinity Agency, a managing general agent (MGA) that specialises in high net worth motor insurance, by taking a minority equity stake in it.

As part of the transaction, Capita Insurance will provide business outsourcing services to the MGA through a long-term contract.

This is Capita Insurance Service’s second investment in an MGA and it says more will be finalised this year.
Its strategy is to build a portfolio of minority equity stakes in MGAs combined with business process outsourcing (BPO) contracts.

This is the first in a pipeline of transactions expected to be finalised during the course of 2014, as Capita’s investment in MGAs, which started just over 12 months ago, gathers pace.

Insurance capacity to Infinity is provided by Markerstudy Insurance, one of the leading specialist motor insurers with Aon Benfield ReSolutions as Infinity’s advisor and binder broker.

John Holm, executive director, Capita Insurance Services, said: “I am very pleased to be announcing Capita’s second MGA transaction. There is significant activity in the MGA market and our strategy of investing in specialist, high quality businesses with experienced management teams and providing advice and business process outsourcing to them is proving attractive. Infinity fits this criteria very well and I look forward to seeing them grow their business during the course of 2014."

Michael Ward, managing director, Infinity Agency, said: "We are extremely proud to announce this partnership with Capita. It immediately enhances our proposition and accelerates our ambitions for growth. With Capita's support and infrastructure we are now ideally positioned to take full advantage of the many opportunities that this specialist area of the motor market presents in 2014 and beyond.”