Direct Group, an LDC-backed business providing outsourcing services to the insurance sector, has acquired Millennium Insurance for an undisclosed sum.LDC backed the management buyout of Direct in August last year. The acquisition of Millennium, a Midlands-based provider of general insurance software to the mortgage brokery and independent financial advisers’ market, is Direct Group’s first since that deal.
Direct plans to treble in size over the next three years through a combination of acquisition and organic growth.
“Millennium provides Direct Group with a front-end sales proposition for our corporate and affinity customers, offering a full range of general insurance products across both personal and commercial lines,” said Derek Coles, Direct Group chief executive.
Coles had built up a relationship with Millennium’s managing director Steve Clowes prior to the deal, which paved the way for the transaction to go ahead.Clowes explained: “Working as the in-house distribution vehicle for Direct Group, we can provide a full set of Financial Services Authority-regulated broker-based point of sale options with full back-office support to the wider Direct Group customer base.”
Millennium is expected to dovetail with Direct Group’s established policy administration and in-house claims management divisions. This move enables the business to deepen its product and service offering to both the mortgage and intermediated markets.
“The acquisition provides Direct Group with new routes to market and the infrastructure of an outbound call centre,” said John Pickering of LDC. “Millennium has also developed a proprietary technology that enables brokers to access an intranet listing products, which is a great add-on.”Direct Group remains on the lookout for further acquisitions.
“The strategy is to be able to provide a full suite of insurance products,” Pickering said.