Managing general agent (MGA) Avid Insurance Services has secured its first acquisition with a move for specialist construction MGA Incorporated Insurance Group Ltd (IIGL).
The move sees Leeds- and London-based Avid take its GWP to circa £75 million as it makes what CEO Steve Gibson described as a “very exciting step.”
“At a stroke we are adding more diversification by increasing our specialist product lines from eight to 12,” he said.
“IIGL is a highly complementary business for our existing commercial portfolio. They have A-rated insurer support and share our underwriting-led business philosophy. They have built their success in construction by underwriting every risk themselves, which has underpinned their outstanding performance during the current hard market.”
IIGL was founded back in 2013 by Mike Smith, Lyndsey Thompson and Dean Surridge, and has 17 staff based in Hornchurch, Essex. In addition to specialising in construction, it also focuses on health and safety, airside, property and packages business for SMEs.
Now, its team will move across to Avid in full, with Thompson and Surridge set to become directors of IIGL and sit on the wider Avid operational board. The move, however, will see founder Mike Smith step down as CEO, though he will retain a stake in the business.
“This is a great deal for Avid and IIGL. Steve and his team have the same relentless focus as we do on underwriting expertise, deep market knowledge and profitable underwriting driven by data analytics,” Smith said. “In a market where capacity is hard won, I am confident that under Steve’s leadership IIGL will accelerate its eight-year trajectory of profitable growth.”
“Mike has built a first-class MGA which will make a big and positive difference to our market presence, and I am especially pleased he is retaining an interest in Avid,” added Gibson.
“Looking ahead, we remain open to acquisition opportunities where they make strategic sense for Avid, and, after recent successful hires (Steve Duxbury and Mike Patchett), we are also keen to attract more specialist underwriters with existing profitable books of business in niche lines who buy into our underwriting-led business model.”
The acquisition has received regulatory approval and the consideration is undisclosed.
