Markerstudy Group has completed on its purchase of the Co-op Insurance underwriting business (CISGIL), commencing a 13-year partnership to provide home and motor insurance products under the Co-op brand.
Advising Markerstudy in the transaction, and a shareholder in the CISGIL joint venture, TwinFocus arranged financing with Blackstone Credit for proceeds of £185 million, and acts as an investment advisor to the Markerstudy Group.
Headquartered in Boston, with its European office in London, TwinFocus overseas more than $7.5 billion of assets and provides diversified investment solutions.
As the UK’s largest MGA, with over 1.8 million policyholders, Markerstudy will become the 5th largest motor insurance provider and has ambitions to strategically expand its footprint through the delivery of targeted products to satisfy the needs of its own, as well as the Co-op’s, customer base.
Kevin Spencer, Group CEO of Markerstudy said: “This is our biggest acquisition to date and provides us with an unparalleled opportunity for growth. The 13-year agreement gives us access to the Co-op’s 4.6 million active members who will benefit from our investment in technology, underwriting expertise and sophisticated product development. I am delighted to have concluded the deal this side of Christmas. It’s wonderful to have positive news to share with our loyal staff after such a challenging year.”
Charles Offord, Managing Director of Co-op Insurance Services Limited said: “We’re pleased that this sale has now completed and our 13-year partnership with Markerstudy to create and sell compelling insurance products can now commence.”
As a result of this agreement, Markerstudy’s customer numbers will increase by around 1.3 million, and GWP will be boosted by more than £500 million.