Clegg Gifford, the Lloyds insurance broker providing bespoke insurance to the motor trade, has acquired Westminster, the direct distribution business of its sister underwriting company Tradex Insurance Group.
The combined entity will have gross written premiums worth almost £70 million, making it the country’s largest specialist motor trade broker.
The acquisition was supported by a £11 million senior debt facility from Investec Specialist Bank’s Growth and Acquisition Finance team. Concord Corporate Finance, a specialist adviser to the insurance industry, was the corporate finance adviser on the deal.
Toby Clegg, the director of Tradex Insurance and Clegg Gifford, said Westminster is a much-loved and respected brand in taxi insurance.
He said: “This gives us a national footprint and distribution network throughout the country. We hope to expand the product range offered by the 45 Westminster agents, who are all excited to be part of a broker.
Clegg praised Investec’s efficiency during the funding process and its understanding of the complexities associated with the insurance industry.
The acquisition leaves Tradex as a pure underwriting company, bolstering its capital position as Solvency II regulations on capital requirements for the insurance industry come into effect.
James Stirling of Investec Growth and Acquisition Finance said the bank is committed to expanding its coverage of the sector.
“We are open to discussions with management teams considering similar transformational deals. With the backdrop of Solvency II, Investec believes there are more opportunities ahead for businesses looking to grow or consolidate,” he said.