Right Choice to buy Bennetts

Bennetts is set to be bought by Right Choice Holdings, Insurance Age can reveal.

The news comes six months after Ardonagh divested on its own purchase of the business following an “expensive and burdensome” probe into the deal from the Competition and Markets Authority.

Deal
The specialist motor broker, which Ardonagh attempted to buy from Saga last year for £26m, will become part of motor experts Right Choice which is based in Romford, subject to regulatory approval.

Mike Joseph, CEO of Right Choice, commented: “I am delighted to confirm that Right Choice Holdings has agreed the purchase of Bennetts, subject to regulatory approval. We will publish more information once the transaction completes.”

An Ardonagh spokeswoman said: “We are pleased to have agreed the sale of Bennetts to Right Choice after a competitive process and with the support of the CMA. We wish the team every success.”

Just last week Right Choice purchased Fresh-brands Autosaint, Ladybird and First Van from Kingfisher (formerly known as Vantage) which bought Fresh in 2018. The in-force book of business and the team who sell and service the Fresh motor brands, transferred to Right Choice as part of the deal which came into effect last week.

Right Choice Insurance Brokers (RCIB) is an Essex/East London based broker with a wide range of insurance products including Motor, Home, Bike, Van, Commercial, Taxi, Motor Trade. It also offers breakdown insurance via its AutoAid, Autonational and Euro Rescue sub-brands.

Results
In its most recent set of results, Right Choice saw profits increase.

According to a document filed on Companies House, the broker’s turnover was £30.39m in 2019, up from £27.99m in the preceding year. In addition, gross profit grew to £24.85m in 2019 (2018: £22.63m), while operating profit fell to £6.31m (2018: £7.46m).

Speaking when the results were published in August last year, Right Choice CFO, Mark Mugge – who was formerly CFO at Ardonagh brand Towergate – commented: “From the company’s perspective we were really happy with the 2019 results. We’re extremely satisfied with 2020 so far and the direction the business is going.”

He also revealed the business was planning on making acquisitions in 2021.

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