A-Plan Holdings agrees terms to acquire Endsleigh from Zurich
A-Plan Holdings has today announced that it has agreed terms to acquire Endsleigh from Zurich.
After hiring investment bank Evercore last October to explore a possible sale, Zurich has now agreed the disposal of the insurer aimed at students.
Endsleigh will continue to operate as a separate entity with the existing management team from its base in Cheltenham.
It is currently going through a transformation plan which will see “significant investment”.
Carl Shuker, group chief executive of A-Plan Holdings said: “We are looking forward to working with Jeff Brinley and his team on the next stage of Endsleigh’s development.”
He then went on to say that Endsleigh is a “nice, complimentary company” to add to the already growing A-Plan model.
A-Plan has a number of high street branches where customers can go in and speak to a representative. When asked if students will now be able to go into those branches to ask about Endsleigh cover, Shuker said: “It is not on the agenda right now, but never say never.”
A-Plan enjoyed continued growth in the year ending 28 February 2017, with a 12.4% increase in turnover, and pre-tax profit up 7.3% and Shuker hopes this acquisition continues that by increasing the company’s footprint.
“On a group level, it is expanding the footprint of the population of policyholders that we can address and service. A-Plan predominantly serves the more mature driver, while Endsleigh targets students, so we think the two companies complement each other well.”
Brinley, chief executive of Endsleigh commented: “This is a really exciting time for us and we’re delighted to be joining such a respected organisation as A-Plan, who continue to deliver impressive results in a challenging market.”
Zurich UK’s chief executive, Tulsi Naidu said it was a “positive transaction for all parties,” and it shows a “clear demonstration of how we are continuing to simplify our organisation and optimise our portfolio”.
Naidu also believes it is the “right time for it (Endsleigh) to move into new ownership.”
The acquisition is subject to regulatory approval.