Bspoke Group strikes first acquisition after rebrand

Founded in 2009, Miramar is a managing general underwriter that focuses on specialist property, particularly unoccupied and non-standard risks. Via delegated binding authorities it works with over 30 coverholders across the UK including retail and wholesale brokers and managing general agents.

Across its relationships, Miramar adds £13m of gross written premium to Bspoke, with the figure projected to grow to £16m by the end of the year.

Staff

Founder and CEO Jeff Turner, along with five colleagues, will remain with the London-based business, however Bspoke CEO Tim Smyth told Insurance Age that no decision on the brand has yet been made.

Bspoke Group consisted of five divisions (see box) after the recent rebrand revealed by Insurance Age.

Miramar will sit alongside these as a sixth subsidiary in a deal that has been a year in the making.

Smyth detailed he had known Turner for over 30 years as he listed cultural fit and a track record of profitable underwriting as the key priorities in acquiring.

“We see culture as a huge driver of what we are trying to build here so it makes a very natural fit,” he said of Miramar. “It has a clear track record in delivering very profitable results.

“We have written property as a class for some time but what we are trying to do is really focus on more specialist lines.”

Bspoke already had a relationship with Miramar as a capacity provider. Business from Miramar was in turn placed into Bspoke’s core provider Watford Insurance Company Europe.

Miramar also has a “big chunk” of its business in a long-term relationship with Ageas, Smyth continued.

“We would see no reason to change that successful working relationship,” he stated.

“It is a bigger and broader remit that we give [Miramar]. It is a different distribution channel, it has access to customers that we don’t and relationships that go back a long time. It is a way of us bringing that into the fold.”

First

According to Smyth, Miramar is the “first in the queue” of acquisitions.

UK General and Precision Partnership were acquired by private equity duo Montague and Rcapital Partners from Primary Group for an undisclosed sum, announced in August last year and completed in October.

“Our backers are very keen for us to use this platform. It is all about build and grow,” Smyth said.

“We have another couple that we are in semi-exclusive discussions with at the moment. They are going to be niche and specialist.”

Stressing that the firm was not after generalist motor or household business, he confirmed it was “to a certain extent … product agnostic”.

He explained: “If it delivers good value to the customer, we are comfortable with the processes, controls, people and data then why wouldn’t we do it?”

Size

The first buy for the newly minted company has been of around “average” size, Smyth calculated. “[We are] looking sub £10m, and substantially bigger,” he expanded.

“Our backers are very encouraging.”

Future acquisitions could be more standalone units or bolt-ons to the existing structure, Smyth indicated, flagging that all the managing directors were empowered to look to make hires or find purchase opportunities.

As previously reported, Bspoke currently underwrites more than £100m of GWP and has a goal of 100% growth in the next three years.

“[Acquisitions] is certainly one of the main contributors and tactical hires as well,” Smyth detailed.

“Our organic growth is very strong. We have already put on 10% growth since October.

“People are used to the brand and the single platform. We are trading off each other. The group is generating natural growth.”

Transition

The personal lines MGA element – formerly known as UK General Insurance and now Bspoke Underwriting – lost £7.41m in its financial year before being snapped up by Rcapital and Montague.

“We will be profitable in this financial year,” Smyth updated for the group.

“We are very focused on underwriting driven results and have been for the last couple of years. That takes time to feed through the business.”

He concluded: “We have never made a secret of being a business in transition on UK General. The commercial side was always very strong.

“UK General has been on a journey of cleansing its portfolio and bringing in new people and opportunities. We have changed the look and feel of it and been very transparent about what we are doing.”

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