2 January 2018 Insurance

UK temporary insurance platform completes MBO

Tempcover, a UK-based online temporary insurance platform, has completed a £13.3 million management buy-out (MBO) backed by £7.5 million from Connection Capital, the specialist private client investment business alongside a £5.75 million debt package from Santander.

Tempcover specialises in the provision of temporary insurance cover, typically providing short term policies of 1-28 days available through customers portals, UK insurance brokers and affiliate partners. It offers short-term covers, for example when a customer is buying or borrowing a car. It also focuses on new areas such as learner-drivers, students, Ex Pats and home insurance.

Established in 2006, the company now has an estimated 60 percent market share in its niche, writing over 360,000 policies last year.

The company has also added Peter Barrett as a new non-executive chairman and Christian Young as a non-executive director to its board. Both bring significant personal lines insurance industry experience, are Connection Capital clients and have invested in the MBO.

Miles Otway, partner at Connection Capital said: “Tempcover is a market leader and has won many accolades for its innovation and its service – and with good reason. It’s a dynamic pioneer in its niche with real ambition and capacity to capitalise on growth opportunities.

“We are delighted to back Alan Inskip and his team and to have introduced a new value-adding Chairman and NXD from our network, the ingredients are all there to accelerate growth. We believe that this deal represents a strong investment proposition, and our clients clearly agree.”

Alan Inskip, CEO of Tempcover, said: “Tempcover has been trail-blazing the specialist temporary insurance market for over a decade, so the MBO is a real milestone in our evolution. We have exciting plans to grow the business significantly, which will see us develop our capability into existing and new areas of temporary insurance. Connection Capital’s investment and expertise will undoubtedly be invaluable as we strengthen our market position and ramp up our offering.”

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