Allianz Insurance has bought a 10 per cent stake in insurance intermediary Oval Group.
Oval says the buy should enable it to fund further acquisitions and allow existing shareholders to take profits from the firm. But Oval is adamant it will remain an independent business, pointing out it has existing institutional shareholders that have not compromised this.
Oval chief executive Philip Hodson says: “We are delighted to have such a strong partner in Allianz, which has recognised the value of the Oval business. Oval has always looked to the long term and this is supported by Caledonia and our other major shareholders, which have all maintained significant stakes in the business.”
Allianz says it is committed to supporting the independent intermediary market for commercial customers and says it will not get involved in the management of the Oval business and will not be taking a board position.
Allianz general manager Chris Hanks says: “We are pleased to have acquired a minority stake in Oval. They are a high-quality broker with a good acquisition strategy and track record of profitable growth. Their client base and business model are very aligned to our own and we see this as a good partnership. This is a pure investment in a business and a management team in whom we have a lot of confidence.”