LDC has invested £28m (€31.7m) for a minority shareholding in UK vehicle insurance specialist Right Choice Insurance Brokers (RCIB).
Chief executive Mike Joseph launched RCIB in 2008 and it has grown year-on-year since, reaching turnover of £26m in its latest financial year and employing more than 350 people. In 2016, RCIB acquired three premium motor breakdown insurance brands from ERS to strengthen the breakdown cover arm of the business.
Insurance broking has attracted a significant amount of private equity investment, with managers noting the industry’s steady cashflows, the opportunity for consolidation and the scope for technology to engage with new customers and manage compliance.
The business levers insurer relationships to deliver competitive premiums to customers who typically find it more difficult to buy insurance online. It has developed proprietary software and also invested in staff to add further value through human interaction.
The transaction was led by Yann Souillard, Steve Aston and Aylesh Patel at LDC, with Souillard and Aston joining the board. Ian Owen, previously a board member at insurance giants Zurich and Liverpool Victoria as well as personal line specialists A-Plan, will serve as non-executive chairman.
“We’re now at the stage where investment is paramount to enable us to push on to the next phase of our growth plans. Having held a longstanding relationship with LDC, partnering with them was a natural fit and we are excited to move forward with our shared ambition,” Joseph said.
Debt facilities were provided by Ares. The management team was advised by KBW-Stifel. LDC was advised by Addleshaw Goddard, KPMG and OC&C.