Peter Wood leads MBO vehicle to take on remaining 70% of the online insurer
Esure founder Peter Wood has taken full ownership of the business after buying out Lloyds Banking Group’s stake for £185m.
Lloyds sold its 70% portion of the business to a management buy-out vehicle, called Esure Group Holdings, led by Wood.
Private equity firm Electra Partners invested £30m in the management buy-out vehicle.
Wood said: “When I set up Esure with Halifax plc as joint venture partner in 2000, no one could have foreseen the events that would lead to Lloyds Banking Group – which already offers car and home insurance successfully – taking on that role.
“This move creates a clean base for both companies to move forward, pursuing their own insurance strengths unfettered.
The agreement marks the start of a long period of hard work for everyone at Esure but we will relish this challenge.”
Lloyds Banking Group’s group executive director of insurance, Archie Kane, said: “This sale means we can focus our efforts on our core general insurance brands of Halifax and Lloyds TSB.”
Online insurer Esure, which includes women-only brand Shelia’s Wheels, has around £1bn in gross assets.