Zego and QBE expand partnership; Needham takes GWP to £9m; Axa XL appoints head of cyber and Lloyd's

From Post this week

Offshore wind scale-up presents challenges for underwriters

Fixed recoverable costs regime extension delayed

Judge gives go-ahead to BI appeals and awards Greggs 60% of costs

Tony Sault leaves EY

Insurance account handler turned fraudster caught after climbing Sydney Harbour Bridge

Aviva’s Blanc calls UK’s diversity progress a ‘disgrace’

Data Analysis: Top Lloyd’s syndicates bounce back from £671m 2020 loss

From people this week

Trade Voice: ABI’s Hannah Gurga reinforces the vital role insurance is playing in the midst of the permacrisis

Aon’s Martyn Denney says digital solutions can bridge the protection gap and increase customer confidence

Ex-McLarens and GAB exec Trevor Latimer passes away

Pick of the Week

Stubben Edge to launch 12-month term life insurance cover

Date announced: 17 November

Deal value: Undisclosed

Stubben Edge Group has announced a new, fully digital 12-month term life insurance product that any general insurance broker can place for a client quickly and easily.

The product has been built to cover those people who are self-employed, sole traders or small businesses and thus need quick cover. Cover can cost as little as £9.50 per month and gives £50,000 to £200,000 via a relatively short question set.

This is a general life insurance policy insuring a client for 12 months, that any broker can sell without the onus of the usual specific requirements needed when procuring a whole life or long-term life insurance policy. A lump sum is payable in the event of the client’s death within this time-period, with very few exceptions.

This term life cover is comprehensive: clients can get worldwide coverage, including cases of foreign travel and residence, and there are fewer restrictions on occupation. In addition, clients who have a short-term business loan or business finance product can get cover for the period of the loan/finance provided it is 12 months or less.

Chris Kenning, CEO Stubben Edge Group said, “Covid-19 showed us how much life insurance is needed but also, how hard it is to for large parts of the country to access. Working on this innovative product we are closing the under-insured gap experienced by so many SME owners or those employed on short-term overseas contracts.”

Deals/News of the Week

Ardonagh Group announces acquisition of Australian insurance firm Envest

Date announced: 23 November

Deal value: Undisclosed

The Ardonagh Group has announced that it has agreed to acquire Envest Pty.

Headquartered in Brisbane, Queensland, Envest is an insurance investment and distribution business with a diverse portfolio of brands and national footprint. Under the terms of the agreement, Ardonagh intends to acquire Envest for a consideration of AUD482m (£270m) which will be funded with a combination of equity and debt.

The businesses being acquired as part of Envest include Aviso Group, a network of broking offices across five states managing circa AUD405 million in gross written premium, and 10 established MGAs operating both direct to consumer and intermediated.

The combined portfolio has over 550 employees and recorded revenue of AUD76.7 million (£42 million) for the financial year ended 30 June 2021.

Envest will be acquired by Ardonagh Australia Pty, which will trade locally under the Envest name and be led by current Managing Director Greg Mullins upon completion of the transaction. Envest will operate as part of Ardonagh Global Partners, which is led by CEO Des O’Connor.

Ardonagh Global Partners’ other Australian assets, Resilium Insurance Broking and Epsilon Underwriting, will operate as normal and continue to be led by their existing management teams.

Adrian Kitchin, CEO at Ethos Broking Australia, and executive director of Resilium and Ardonagh Australia, will become part of the executive team within Envest. Paul Lynam will continue in his role as chairman of Ardonagh Australia.

Commenting on the announcement, O’Connor said: “This is a hugely complementary acquisition, aligning neatly with our Group’s footprint both globally and in the Australian market, which has grown substantially since our maiden investment in Resilium in February 2021. It provides a proven platform to accelerate our growth ambitions in the region.

“Greg leads a highly experienced management team with deep expertise in the market and together they have grown a strong people-focused culture over the past six years. We look forward to rallying the scale and experience of the wider Ardonagh Group behind them as they continue to invest in and empower the best and brightest entrepreneurial talent in the Australian market.”

The Needham Group acquire Corporate Insurance Solutions

Date announced: 24 November

Deal value: Undisclosed

The Needham Group has announced it latest acquisition – Corporate Insurance Solutions – taking total group GWP to £9m.

Corporate Insurance Solutions is based in Lutterworth, and most of its clients are in the local and surrounding Leicestershire area. It is a commercial insurance broker with clients across all business sectors, with a niche specialism in the entertainment and leisure sector.

Corporate Insurance Solutions has been trading for 31 years and the company directors Paul and Helen Dockerty will remain fully entrenched in the Needham Group within the commercial executive broking team.

All staff and the current office in Lutterworth remain in place as part of its “community broking” ethos.

This is Needham’s seventh acquisition since Neal Lowe acquired the business in 2000 and follows the successful integration of Inspire Insurance Services and its customers in November 2020 and most recently, the acquisition of Baldersons Insurance Services in April 2022.

Using a combination of organic growth and further acquisitions, Needham’s turnover target is £20m+ GWP by 2025 with the business currently circa 85% commercial lines and 15% personal lines.

Neal Lowe, managing director of the Needham Group, said: “I am really pleased to have got this deal over the line before the end of 2022, and we warmly welcome all staff and customers of Corporate Insurance Solutions to the Needham family.

“We’d like to reassure everyone it really is business as usual for all staff and valued customers moving forward and I’m personally delighted that Paul and Helen Dockerty remain fully within the business bringing their vast expertise and enthusiasm with them.”

Paul Dockerty, director of Corporate Insurance Solutions, said: “From the moment we met Neal and his team, we were convinced that joining the Needham Group was the right thing for our business to help us grow and develop further, and our ambitions and business goals are closely aligned. We look forward to a successful partnership.”

Zego and QBE expand partnership to B2C products

Date announced: 22 November

Deal value: Undisclosed

After a strong start collaborating across fleet insurance capacity, Zego and QBE have expanded their partnership into a B2C offering. A-rated insurance carrier, QBE, will be supporting Zego across their van and car, 30 day, and flex policies.

The partnership expansion is a testament to Zego’s ambition to engage with a smaller group of strategic partners to firm up its offering whilst continuing to innovate towards industry-leading risk assessment and customer-centric products.

The expansion comes as Zego continues to shore up its fleet and consumer offerings, with upgrades that help better understand risk across its B2B and B2C app and dashboards.

Jon Dye, director of motor underwriting at QBE, said: “Earlier in the year we were excited to partner with Zego to support them across their fleet portfolio. Zego’s innovation in the insurtech sector is very much aligned with QBE’s desire to modernise and advance the insurance industry. We have made a fantastic start across B2B and are looking forward to expanding the partnership into the B2C sphere.”

Sten Saar, CEO at Zego, said: “Today’s news reflects the successful relationship we’ve enjoyed with QBE to date. Extending our partnership to deliver more tech-enabled, behaviour-led insurance products to our B2C customers emphasises our and QBE’s passion for innovation around data and the benefits it can provide drivers – particularly in the current climate. We are excited to see our partnership with QBE evolve as we build our B2C proposition.”

And finally:

• Axa XL has announced that it has appointed Vanessa Leemans as head of cyber, UK & Lloyd’s, effective immediately. Leemans will be responsible for leading Axa XL’s cyber business in the UK and driving its strategic, profitable development.

• Tokio Marine HCC International has announced the promotion of Vanesa Herrero, current head of claims for Tokio Marine Europe, to the position of chief executive officer - TME. Vanesa’s appointment follows the imminent departure of Christian Kanu.

• Kitsune Associates will close its doors after its reinsurance renewal was declined at the end of October forcing it to runoff the portfolio and business.

• Consilium has announced that it has created a dedicated in-house claims team and has appointed Nicola Chapman to head of claims. Chapman joins Consilium from independent wholesale broker TUE.

• Liberty Mutual Insurance’s Global Risk Solutions division has announced the appointment of Rachel Conran as chief underwriting officer, Liberty Specialty Markets, effective January 1, 2023. Conran will report to Matthew Moore, president of the GRS Office of Underwriting, and Phil Hobbs, president and managing director of LSM.

• NFU Mutual has announced the appointment of Rachel Kelsall as customer services director. Kelsall, currently head of underwriting and claims, will become the new customer services director, taking over from Steve Bower, who retires at the end of March next year.