Markerstudy buys BGL Insurance

Markerstudy has bought BGL Insurance (BGLi) from BGL Group, subject to regulatory approval.

BGL confirmed in September last year that it had appointed Fenchurch Advisory Partners to handle a review of strategic options for BGL Insurance.

Kevin Spencer, group chief executive officer of Markerstudy, commented: “As a leading distributor in the market, taking ownership of BGLi provides us with a unique opportunity to further accelerate and increase our growth potential.

“We have enjoyed a long and fruitful partnership with BGL Group, and this has strengthened in recent years with BGLi acting as an outsource partner to a number of Markerstudy brands. This is a fantastic springboard into 2022.”

BGL
The transaction is expected to complete during the first half of 2022. BGLi, which also owns Compare The Market, provides motor, home, and life insurance.

Last March, the personal lines broker revealed plans to restructure, confirming a redundancy consultation that could see up to 234 jobs lost.

Former BGL boss Matthew Donaldson, who left the business in 2020, was appointed as a non-executive director at Markerstudy last year.

Peter Thompson, CEO of BGL Insurance, said: “We are excited to become part of the Markerstudy Group. The partnership is a natural evolution for BGLi and brings together our leading digital distribution capabilities with the innovative underwriting capabilities of Markerstudy.

“The combination creates a business with close to 6 million customers and our complementary skills will enhance our customer proposition.”

Deals
In January 2021, Markerstudy secured a £200m investment deal led by Pollen Street Capital.

Gary Humphreys, Markerstudy group underwriting director, told Insurance Age at the time that the funding would restructure the MGA’s debt and pave the way to making further deals.

Michael England, partner at Pollen Street, said: “We are hugely excited to announce this combination as BGLi’s digital and data capabilities are second to none and accelerate many aspects of Markerstudy’s digital agenda.

“Together BGLi and Markerstudy are one of the fastest growing players in UK general insurance.”

Markerstudy recently bought Lloyd’s broker Clegg Gifford. Last year it also purchased Brightside and in December 2020 it finally completed its deal to buy the Co-op Insurance underwriting business after a two year delay.

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