Markerstudy confirms Tradex deal

Motor trade and taxi specialist insurer Tradex was notable by its absence when the purchase of sister company Clegg Gifford was unveiled in December 2021.

However, a filing released this week at Companies House has confirmed that Tradex is part of the package.

The financial statement up to 31 December 2021 for Markerstudy Limited was signed off on 22 October 2022.

It reported: “On the 24th December 2021 the Markerstudy Group announced it had completed on the deal to acquire Lloyd’s broker Clegg Gifford subject to regulatory approval.

“Formed in 1968 as a general insurance broker, Clegg Gifford later evolved into a Lloyd’s broker and specialist in the UK motor trade market segment.

“Tradex Insurance Services is also being acquired as part of this same transaction.

“The group have received FCA approval for Clegg Gifford and are awaiting PRA approval for Tradex Insurance Services.

“The two transactions will need to complete at the same time, and are expected to complete by the end of October 2022.”

Insurance Age understands that the deal is now expected to complete early in 2023.

A spokesperson for Markerstudy said the business had nothing further to add beyond the contents of the Companies House filing.

Switch

Markerstudy switched from being an insurer to become a managing general agent in 2018.

Qatar Reinsurance, which is a subsidiary of Qatar Insurance Company bought the Gibraltar-based insurance companies: Markerstudy Insurance, Zenith Insurance, St Julians Insurance and Ultimate Insurance.

At the time Markerstudy underwrote more than 5% of the UK motor insurance market, generating premiums of £750m.

It was later revealed that the price was £107.8m.

Close association

Tradex was formed as an underwriting agency in 1992 before becoming an insurance company in 1995. It has a close association with Clegg Gifford & Co which holds a binding authority.

Along with motor trade and taxi specialisms Tradex lists road-risk areas of expertise on its website as including “unusual cover” such as for ice cream vans, funfairs, get you home services and specialist commercial.

The latest Group Solvency and Financial Condition Report for Tradex Insurance Holdings revealed that for the year ended 31 December 2021, the insurer wrote £68.63m of gross written premium.

This was dominated by £66.86m of motor liability GWP along with just over £1m of premises GWP and the remainder coming from liability business.

Result

All three lines of business posted a positive net underwriting result, with the total being £2.55m.

Both GWP and the net result were down on the £72.19m and £3.23m achieved the year before.

The insurer reviewed that 2021 was “planned as a year of consolidation with conservative budgets being set in the expectation of more difficult trading conditions as the immediate impact of Covid-19 pandemic lockdowns was replaced by businesses and households learning to live with a very different set of circumstances”.

Its solvency capital requirement coverage stood at 123%.

The majority shareholder of TIH is Royston Clegg who holds 69.5%. Clegg Gifford & Co has an 18.2% stake.

Markerstudy had to wait almost 24 months for PRA clearance for its deal for the Co-op Insurance underwriting business, getting the green light in December 2020 having first announced the takeover in January 2019. Markerstudy rolled the Co-op business into its MGA arm.

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