Insurance giant Towergate has strengthened its grip in the protection market by buying payment protection provider Britishinsurance. com.
Under the terms of the deal, Britishinsurance.com’s Simon Burgess will remain as managing director and all the firm’s staff will continue in their current roles.
Burgess says he was approached by a number of suitors but Towergate was his clear choice to take over the firm. Towergate has bought up around 117 companies since it launched in 1997.
It says Britishinsurance. com’s ambitious growth plans will benefit from the scale, skills, strong underwriting relationships and access to capital that Towergate can provide.
Britishinsurance.com controls around £10m of gross written premiums in the PPI market.
Burgess says: “This is a very exciting new phase in our development. We have built our business on our commitment to offering a very competitive and compelling proposition to consumers and concluded that Towergate was the ideal partner to support us this next phase of development.”
Towergate executive chairman Peter Cullum says: “Britishinsurance.com is a great signing for Towergate and complements our existing payment protection capabilities.
“As a leading brand name, the company will continue to run under its own identity through the leadership of Simon Burgess.”
Towergate is the biggest independently-owned insurance broker in Europe and controls over £1.25bn of gross written premiums.
The company made its first foray into the protection market in late 2006 when it acquired PPI and buildings and contents insurance provider Paymentshield in a deal that was reckoned to be worth around £180m.
Towergate has since set its sights on the IFA market and in early 2007 established a new consolidator firm called Towergate Financial Services and is currently looking to acquire IFA businesses.