Catlin sells £85m stake in Insurethebox to Japanese insurer

Japanese insurer MS&AD has bought a majority stake in Insurethebox, from Lloyd’s insurer Catlin and other shareholders, for £105m.

The deal is expected to close in the first quarter of January 2015.

Catlin expects to net £85m from the sale.

The insurer said after detailed evaluation it decided it was the right time to exit its Insurethebox investment.

As a result of the deal the European arm of MS&D, Aioi Nissay Dowa Insurance Europe (ANDIE), will own 75.01% of the shares.

The remaining 24.99% will be retained by the existing management of Insurethebox’s parent company, Box Innovation Group (BIG).

ANDIE has core competences in motor insurance, automotive related insurance products and mobility solutions. 

MD&D The insurer said the acquisition will enable ANDIE to strengthen its motor business across Europe and will allow MS&AD to exploit the technology through its global platform.

A spokesperson said: “MS&AD believes that in the long-term, telematics will deliver a better value proposition for customers as well as save lives by promoting safer driving.

“The technical evolution in the automotive sector, and that the future mobility trends will lead to a strong increase in demand for connected car solutions and services over the next 10 years. 

“Furthermore, MS&AD’s strong strategic partnership with Toyota Motor Corporation and Toyota Financial Services also underlines the strategic importance of this acquisition.

“This new technology will allow the delivery of user based telematics solutions for key clients as well as the wider market.”  

BIG chief Executive and founder Mike Brockman said being part of ANDIE would give Insurethebox the platform and ability to keep developing new offerings.

Brockman added: “The motor insurance industry is going to go through much change in the coming years as technology moves on at a rapid pace.

“This tie-up will enable us to increase investment, apply our skills and technology to new markets and, above all, to make the connected car a reality given ANDIE’s international spread and strong connections to the OEM industry.”

He added that the acquisition would mean additional work for the company’s Newcastle service centre, which currently employs more than 300 people. The insurethebox and drive like a girl brands will remain unchanged.