“Now is the right time for it to move into new ownership” was how Covéa Group managing director of reinsurance and international operations Pierre Michel described the sale of Swinton Group Limited to The Ardonagh Group.
In an announcement this morning, Ardonagh said it has agreed to acquire Swinton from Covéa for a consideration of approximately £165 million. The brokerage group added that it intends to fund the amount not only with committed financing from its existing bank group but also with cash from monetising certain assets of the UK personal lines broker.
In response to changing customer buying preferences, Swinton has invested £45 million over two years in digital capabilities and transformation, which at the same time meant a series of branch closures and job cuts. It reported a turnover of £168 million in the year ending December 31, 2017.
Citing Swinton’s repositioning, Michel noted further: “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.”
With a clientele of more than one million, Swinton offers a range of insurance products – car, home, bike, van, as well as commercial and taxi – and additional services like breakdown cover.
“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,” commented Ardonagh chief executive David Ross.
“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.”
