Ryan Speciality Group (RSG) has today announced that its UK insurance distribution and claims handling services arm, Ryan Direct Group Limited (RDG) is to be sold off.
RDG will be acquired by Nevada Investments – a holding company for New-York based HPS Investment Partners – and Tango Partners – the investment vehicle for Chicago-based Madison Dearborn Partners – though terms of the deal were not disclosed.
RDG’s senior leadership team, led by CEO Derek Coles and CFO Scott Hough, will continue to lead the business, which will operate under the name Direct Group.
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Coles thanked RSG for its support over the past five years, which included the acquisition of Midas Underwriting in 2016, and said that the newly-named Direct Group has “established a strong performance track record with a large number of insurance and affinity clients and will play a key role in supporting Nevada’s portfolio of businesses, while maintaining its independence.”
“The demand for high quality, fully compliant, outsourced services continues to grow as carriers, brokers and distributors alike continue to face significant cost and regulatory challenges,” he said in a release.
The chairman of RSG Underwriting Managers, Michael D Rice, said he was positive that Direct Group’s “impressive leadership team” would successfully lead the firm to its next stage of development and advance its “considerable potential.”
The acquisition remains subject to regulatory approval.
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