A major deal has been agreed for the largest independent managing general agent (MGA) in the UK.
CFC Underwriting will be acquired by its founder and chief executive David Walsh, as well as the rest of his management team, in a deal reported to be worth around £230 million.
The deal has come together thanks in part to a move from private equity house Vitruvian Partners to buy a 40% stake in the firm. According to a CFC release, the deal with Vitruvian will enable it to build on its portfolio of emerging and specialty risk products while also expanding its global distribution base.
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“This is an incredible deal for our staff, carriers, brokers and customers – because it shows that we want to take this business to the next level and build the world’s pre-eminent MGA,” explained CFC chief executive officer David Walsh. “We have always been committed to independence and wider employee share ownership and this deal is designed to deliver those two goals.”
His words were backed by Joseph O’Mara, a partner at Vitruvian.
“The management team have done an extraordinary job in building CFC to be the leading independent UK MGA, and we believe that through continued focus on industry-leading products, customer service, and innovation, CFC is poised for continued success,” he said.
The deal is expected to close this summer and is subject to regulatory approval.
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