"This deal is a major strategic opportunity for Rcapital and its investors - and we are confident in the potential of the combined business. We believe that the MGA sector is a great investment opportunity and, after a challenging period, UKG/PPL is poised for profitable growth with our support."
Rcapital and Montague teamed up to acquire UK General and PPL under an exciting partnership agreement, leading private equity investor, Rcapital, and private investor, Montague, have acquired two businesses from insurance investment specialist, Primary Group Limited.
Under the terms of the deal, Rcapital has acquired a majority stake and Montague has taken a minority stake, the transaction led by Tim Smyth, CEO and Ryan Gill, CFO of UK General and PPL.
UK General is one of the UK’s leading personal lines, managing general agent (MGA) and underwriting specialists, headquartered in Leeds. The business employs over 50 people and underwrites a wide range of personal lines schemes including property, leisure, and lifestyle.
PPL is a specialist support function for authorised insurance agents or brokers including but not exclusively; One Commercial (commercial combined, contractors and property owners), Binnacle (the UK’s largest insurer of holiday parks), Provego (haulage and other transportation risks), as well as One Commercial Specialty and One Commercial Private Clients. PPL employs over 80 people.
“These businesses have huge potential, bringing them together under our ownership will enable the combined personal and commercial lines business to scale up significantly and build on a business already controlling in excess of £100m GWP and employing 140 people.” commented Chris Campbell, Head of Investments, Rcapital.
The combined group also benefits from the long-term support of two major capacity providers, including insurer Accelerant (rated by AM Best as A- excellent).
Montague will provide extensive support and experience given their long track record in the insurance sector. This acquisition forms an important part of their commercial strategy to build in-house specialty MGAs, combining underwriting talent with technology, data & analytics to deliver superior returns to risk capital partners and equity investors.
Following completion, Tim Smyth will be appointed CEO to both UK General and PPL. Lord Marland, founding director of Jardine Lloyd Thomson plc, and founder of Lloyd’s insurer Jubilee, is to become chairman, subject to FCA approval.
“The immediate priorities will be focused on bringing the two organisations together and ensuring that service and offering to customers and clients is enhanced, as a result of access to broader products, capability, expertise and capacity.” explained Tim Smyth, CEO
“This deal is a major strategic opportunity for Rcapital and its investors – and we are confident in the potential of the combined business. We believe that the MGA sector is a great investment opportunity and, after a challenging period, UKG/PPL is poised for profitable growth with our support.” commented Lord Marland, Chairman.
Donald Harrell, founder of Montague added: “This deal is our first acquisition since launching Montague in 2021. We are excited by this partnership with Rcapital and we look forward to supporting Tim, Ryan and their teams to deliver on their ambitious growth plans for UKG and PPL.”
Tim Smyth said: “With this acquisition and injection of capital, we can look forward to a fresh start for UK General and PPL, after a period of significant change for the business. We now have a fantastic platform to make acquisitions, hire talent and grow – backed by progressive and future-focused owners. I am excited by the opportunity to model the combined group as a niche and specialist schemes player with a relentless focus on profitable, measured growth.”
