Markerstudy sees the challenges in the UK personal lines market as a runway for further growth, following a deal to acquire Atlanta Group, the personal lines brokerage of Ardonagh Group.
Leaders said the new player created by the merger could surpass £3 billion in gross written premium (GWP) very quickly.
“We would like to be a one-stop shop for insurance,” said Kevin Spencer (pictured), CEO of Markerstudy Group.
Spencer also said the merged business would be able pursue more opportunities for growth, both organically and through M&A.
“If something comes along, and it’s opportunistic, we can consider it, and that’s the beauty of the combination,” he said at a recent press briefing. “We can operate really dynamically when something comes up.”
Ian Donaldson, CEO of Ardonagh Retail, said: “That’s always been a passion of mine… to give that diversity of product and diversity of distribution, so you never relied on one or the other. This [deal] expands that, absolutely.”
Asked where they could see opportunities for organic growth, Donaldson named standard home and motor insurance as major areas.
“Given what’s going on at the moment, it’d be crazy not to be pushing hard in motor,” the chief executive said.
While customers are shopping around for better rates, he said, Atlanta can strengthen its pricing sophistication and distribution channels to widen its footprint.
“We are, within Atlanta, quite restricted on some of our footprint,” Donaldson said. “This deal gives us the opportunity to take that even further.”
Customers also ultimately benefit with a broader suite of products available in the market, the CEO set out. Significant brands in Atlanta’s book include Swinton, Autonet, and Carole Nash.
“Considering the cost-of-living crisis, what can we offer that’s different? How can we be a bit more competitive? How can be a bit more sophisticated in the pricing? How can consumers get great brands and great products, but slightly more competitive prices? That would be the challenge we put to ourselves,” Donaldson said.
However, both bosses said the current portfolio of brands under the businesses are still under review pending regulatory approval of the merger. Atlanta and Markerstudy control between 50-60 brands, according to Spencer.
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