Homer, Cullum and Margrett

Peter Cullum’s broking consolidator Global Risk Partners (GRP) has agreed to back the management buy-out (MBO) of Lloyd’s broker Lonmar Global Risks.

The deal means GRP now manages gross written premium of more than £350m and Cullum, GRP’s chairman, says the company wants to grow this to £500m by the end of this year.

Lonmar’s management team, led by chief executive David Pexton, will continue to lead the company.

Cullum (pictured, centre) said: “This latest investment adds to the impressive list of transactions that we have completed since the formation of the Group at the end of 2013 and brings the run rate EBITDA in our businesses to over £10m. While still in its infancy, GRP now manages GWP in excess of £350m, with an ambition to see this grow to over £500m by the year end, making it one of the fastest growing businesses in the broking sector.”

GRP chief executive David Margrett (pictured, right) said: “GRP’s investment in Lonmar, alongside Ropner, means that we are now among the largest independent Lloyd’s broking groups, covering a wide range of specialty areas that will be of benefit both to our existing clients and to our growing network of regional brokers.

“We have a strong pipeline of opportunities and expect to announce further investments over the next few months.”

Pexton said: “Our MBO provides an excellent platform to fast track our growth agenda and will benefit our clients, staff and insurer partners.

“With GRP’s backing we will significantly accelerate our strategy with the acquisition of individuals, teams and businesses, whilst maintaining our emphasis on providing the quality service and innovative approach that our clients expect from us.

“The whole team is very excited about the prospect of partnering with GRP and taking Lonmar to the next level.”