The Ardonagh Group has announced that it has entered into an agreement to sell Direct Group’s (“DG”) claims business to Davies Group for an amount of up to £36 million dependent upon performance.
Under the terms of the deal, Direct Group’s 360-strong claims team, led by Managing Director Russell Crewe, will come under new ownership with immediate effect including two dedicated claims centres in Elland and Preston.
Direct Group Claims and Davies Claims Solutions combined will form one of the UK’s leading providers of end to-end claims solutions with operating centres in the UK, Ireland and Bermuda.
Davies Group will provide claims management services to Ardonagh’s underwriting and broking businesses in a 6-year agreement made as part of the deal, continuing the existing claims servicing agreement carried out by DG Claims.
The proceeds of the sale will be used for further investment in the Group.
Direct Group’s distribution brands Simple Landlords, Fortress and Lutine Life Assurance remain as part of Ardonagh’s Schemes and Programmes segment under the leadership of Derek Coles.
Commenting on the announcement today, CEO of Direct Group Derek Coles said:
“Our claims operation has gone from strength to strength since its creation in 2007, earning a reputation for first class customer service and now delivering significant value as part of Ardonagh. I’m incredibly proud of the business we have built, and now creating this new opportunity for the claims business to thrive and prosper in future.”
“In Davies Group, we believe the team are well placed to continue growing on their success as part of a renowned specialist in the claims field, sharing the same appetite for innovation and quality.”
CEO of The Ardonagh Group David Ross added:
“At the heart of The Ardonagh Group strategy is the desire to be best in class across a core portfolio of brands and businesses. Under the ownership of Davies Group, the DG claims operation will be completely at home within a leading claims service provider and will undoubtedly benefit from shared expertise and ambition in this specialist market. Today’s announcement will allow us to accelerate investment in our strategic priorities as a Group and we look forward to continuing our strong relationship with DG’s claims business in the future as part Davies Group.”