Open GI sale not a cause for concern, say users

Montagu is targeting a sale of Open GI in the second quarter of 2023.

Sources told news outlet Reuters that the private equity house has been working with advisers on a strategic review of the business.

Montagu backed a management buyout of the Worcester-headquartered business in 2014.

As previously reported by Insurance Age, it is other PE houses that are most likely to be interested in snapping up the firm. But the possibility of a trade sale cannot be ruled out.

System

Liverpool-based JB Brokers moved to Open GI from Applied Systems in 2020 and operates on the digital platform, Core Cloud.

Joint-owner of JB Brokers, Mark Brown, said the broker picked Open GI because he had used the software house in previous companies, and found it to be an easy system to use.

Brown stated that the broker has had no issues with Open GI, and that the technology provider has always been efficient with its services.

He told Insurance Age he hopes Open GI is able to continue with this level of service if any sale happens.

Better technology

However, another current Open GI customer stressed that better technology should be the focus for the new investor if Montagu puts the software house up for sale and completes a deal.

The broker explained that, while services have been fine and changes made over the past years have been positive, there is still room for improvement.

The Open GI client warned that the insurance sector can always fall behind other financial services markets if investments are not kept up, and implementing better technology can “help the industry”.

Drop in revenue

Earlier this year, Open GI posted a fall in revenue for third year in a row in its results for the year ended 31 May 2022.

However, post-tax profit rose by more than £1.75m to £13.72m, this was the first increase in post-tax profit since 2017.  

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