By leveraging upon Markerstudy Group’s new positioning as the largest UK MGA backed by a 10-year A-rated capacity agreement, there was now the ability for further expansion through acquisition.
JPO was retained as Chief Advisor to lead on the Group’s biggest deal to date; the £185m acquisition of CIS General Insurance Limited (“CISGIL”), trading as Co-op Insurance.
As an integral part of the Executive Team, JPO steered the delivery of this multi-million-pound deal through his trusted approach in planning, structuring and negotiating. By devising and implementing four key pillars, the client was able to reach a winning deal.
JPO devised the deal structure through which CISGIL could be absorbed within Markerstudy’s MGA business model, supported by the negotiation of a 13-year Distribution Agreement and Branding Licence with Co-op Group Limited. The definition and implementation of the required legal, regulatory and tax structuring steps, resulted in an unmatched opportunity of growth for all parties.
To support the transaction, JPO orchestrated the securing of strong financial backing. Through extensive planning, delicate negotiations, and taking charge of all transactional activities, JPO was able to successfully raise £150m from two separate investors. With this excellent rise in capital followed the extremely complex acquisition process, which required continual development and evaluation to ensure the desired outcome was reached for all parties.
JPO was responsible for the co-ordination of a cohort of Subject Matter Experts for the conceptualisation of the Target Operating Model, which formed the blueprint for the Migration and Integration activities. JPO also supported the production of transaction documents and the co-ordination of Deal and Programme Governance.
The final step involved JPO safeguarding all legal, regulatory and operational aspects of the “Change in Control” process under the supervision of the Prudential Regulatory Authority and the Financial Conduct Authority.
JPO fully integrates within a team to explore all potential outcomes and find previously unseen solutions, such as implementing cost-saving solutions. In this case, this resulted in £70m of one-off savings on proposed transitional service arrangements whilst absorbing 1,200 employees, allowing for further cost savings of £15-20m per annum on synergies.
This monumental deal allowed Markerstudy to acquire a PRA regulated insurance carrier with GWP of £500m p.a., taking on the administration of 1.8m customers. The 13-year Distribution Agreement gave access to Co-op’s 4.6 million active members. Now able to provide home and motor insurance products under the Co-op Insurance brand, Markerstudy became the 5th largest motor insurance provider in the UK.
Read our Case Studies on Chief Advisor for the Restructuring of Markerstudy and the Divestiture of 3 Insurance Carriers Worth £120m
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