£215m price tag adds 600,000 customers with 1.2m policies
Fortis UK has bought Kwik-Fit Insurance Services for £215m. The transaction is expected to be completed in the third quarter of 2010.
Fortis said it was part of its multi-channel strategy and builds on the long-term relationship that has existed between the two businesses. Fortis will have a combined retail customer base of 1.6 million, with Fortis as the fourth largest personal lines intermediary distributor in the UK.
The combined reported revenue of Kwik-Fit Insurance Services Group in 2009 was £89m and would bring Fortis’ total retail revenues to £189m. Kwik-Fit Insurance Services has around 600,000 customers holding 1.2 million policies.
Barry Smith Fortis chief executive said: “This is a great acquisition for Fortis which further strengthens our retail capability and adds a respected business and their powerful brands to our portfolio. There is very good alignment between the businesses with a shared focus on delivering excellent customer service.
“The purchase of Kwik-Fit Insurance Services is part of Fortis UK’s strategy to increase the breadth and depth of our products through our multi-channel distribution approach.
“The complementary strengths of Fortis and Kwik-Fit will create an exciting retail business focused on customer needs whilst generating a greater return for our company.”
Brendan Devine, Managing Director of Kwik-Fit Insurance Services said: “We are delighted to be part of Fortis which is a highly reputable global business. Kwik-Fit Insurance Services has seen profitable growth over recent years and being part of the Fortis group will allow us to continue on this journey.
“This is a great strategic fit for our business and with Fortis being such a large multi-national it gives our people even more scope for further development and career growth.”
Kwik-Fit Insurance Services will become a subsidiary of Fortis UK with its existing management continuing to run the business. Devine will report to Andy Watson, managing director of Fortis UK Retail. As a result of the transaction, Fortis will employ around 4,000 people in the UK.