Lloyd's broker Avid sees GWP rise to £75m with first acquisition deal
Lloyd's coverholder, general insurance broker and managing general agent (MGA) Avid Insurance has acquired a majority stake in specialist construction MGA Incorporated Insurance Group (IIGL).
The transaction takes the company's overall gross premiums written (GWP) to £75 million, and expands its specialist product lines to 12.
Based in Hornchurch, Essex, IIGL was founded by Mike Smith, Lyndsey Thompson and Dean Surridge in 2013. It provides insurance across the construction sector, as well as property, airside, health and safety and packaged business for SMEs.
Following the deal, IIGL founder Smith will step down as CEO but will retain a stake in the business. Its underwriting manager Surridge and head of operations Thompson will become directors of IIGL and sit on the wider Avid Operational Board. IIGL will keep its brand and office.
Avid CEO Steve Gibson hailed the transaction as “very exciting for Avid and a big step forward towards meeting our medium-term growth ambitions. At a stroke we are adding more diversification by increasing our specialist product lines from 8 to 12.”
He added: “IIGL is a highly complementary business for our existing commercial portfolio. They have A-rated insurer support and share our underwriting-led business philosophy. They have built their success in construction by underwriting every risk themselves, which has underpinned their outstanding performance during the current hard market.”
Smith said: “This is a great deal for Avid and IIGL. Steve and his team have the same relentless focus as we do on underwriting expertise, deep market knowledge and profitable underwriting driven by data analytics. In a market where capacity is hard won, I am confident that under Steve’s leadership IIGL will accelerate its eight-year trajectory of profitable growth.”
Gibson added: “Mike has built a first-class MGA which will make a big and positive difference to our market presence, and I am especially pleased he is retaining an interest in Avid. Looking ahead, we remain open to acquisition opportunities where they make strategic sense for Avid, and, after recent successful hires (Steve Duxbury and Mike Patchett), we are also keen to attract more specialist underwriters with existing profitable books of business in niche lines who buy into our underwriting-led business model.”
Andy Marsh, founder of Beech Tree Private Equity, which invested in Avid in 2019, said: “This is a bold and exciting move for a top-quality MGA and exactly the kind of transaction we hoped for when we invested in Avid. I am confident that all parties will achieve significant value from this acquisition.”
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