4 September 2014 Insurance

RFIB shareholder may sell as it seeks new funds

Fleming Family & Partners (FF&P) may divest its 38 percent stake in Lloyd’s broker RFIB, ending a seven year investment in the firm.

Speaking to Intelligent Insurer, Jonathan Turnbull, chief executive officer, said the company would be seeking additional capital to grow. As part of this process, he said it was likely that FF&P would sell its stake in the business.

RFIB has appointed Fenchurch Advisory Partners to undertake a strategic review of the business, partly on the back of it re-focusing its specialty offering and to prepare it for growth.

“In order to grow we need additional capital which may result in FF&P divesting,” Turnbull said.“Given that they have been invested for seven years and the normal investment horizon for private equity is five to 10 years it is safe to assume that they may divest during the process but at this stage Fenchurch have been appointed to work out our strategic options before we refinance.”

RFIB has already divested a number of non-core businesses including its book of UK corporate business and another of US casualty business. It also disposed of its interest in Staple Hall Underwriting Services (formerly RFIB Specialist Risks) into a joint venture between RFIB, the current management and Amlin.

Turnbull said: “We’re continuing to expand throughout the Middle East and Africa. We’ve had our hub in Dubai for around eight years and it’s a great area for future business development. If you look at the growth rates for GDP in these territories, it’s plain to see that there are business opportunities either for insurance or reinsurance brokers.

“We are now much more focused. As a medium tier London broker it’s essential to specialise and over the past two and a half years we’ve worked out our specialist product offering and at the same time built a scalable platform.”

Nick Moss, finance director of RFIB, added: “It has been a transformational period for RFIB and I am optimistic about the future. We have continued to strengthen our team with people who have the necessary capability and experience.”

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