GRP delivers on MGA appetite with Nucleus buy

US giant Brown & Brown’s £1.48bn buy of GRP from PE firm Searchlight was announced in March and completed in July.

Upon completion GRP CEO Mike Bruce told Insurance Age that buying MGAs – it already owned Plum Underwriting and Camberford Law – was rising up the consolidator’s buying plans.

Bruce said in August: “We have looked at many other MGA opportunities and it didn’t fit the financial modelling.

“The ones we are talking to are all niche and specialist. They are all different sizes, some are relatively small, one is larger. We may be looking at bulking out into product lines we don’t currently have.”

Lifesciences

Aylesbury-based Nucleus is a specialist MGA that provides insurance to the lifesciences, R&D and specialist manufacturing sectors.

It began trading in 2014 and will become a trading style under the Camberford Underwriting brand. Managing director James McHugh and his colleagues will all remain with the business under new ownership, GRP confirmed.

The deal, for 100% of Nucleus’ share capital, has been approved by the Financial Conduct Authority.

Clive Nathan, who has overall responsibility for GRP’s MGA division, said: “Nucleus is exactly the type of business we look for. It has a true niche focus with great underwriting experience and a leader who will fit well in our culture.

“We are confident that, as part of Camberford, Nucleus will go from strength to strength. We are thrilled to be working with James to support this key sector of the economy, where growth is a priority for the UK.

“It’s great to have such an exciting business joining Camberford as we continue to consider additional opportunities in the MGA space.”

Growth

McHugh added: “We are all very excited to be joining Camberford and, with their help, are confident of building out a leading position in the SME space for lifesciences, R&D and specialist manufacturing industries which are earmarked for substantial growth and are part of delivering prosperity for the wider UK economy.”

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