Insurance solutions provider Rubicon has sold the issued shared capital of Link Underwriting Agency to Nemwil, a member of Guardian Holdings Ltd (GHL). The sale went through for an undisclosed consideration.
Nemwil has set up a company in Gibraltar and is in the process of an application to the Financial Services Authority in Gibraltar to form an insurance company to provide capital for Link's ongoing business.
The sale of Link is subject to the approval of the Gibraltar-based insurance vehicle.
Link staff, including managing director Steve Tidd and chairman Andy Haynes, will become part of the GHL group. Tidd and Haynes will continue to lead Link under the deal.
Rubicon said it had entered into a long-term agreement with Nemwil to provide policy and claims administration to Link for its personal insurance products. The contract is worth £35m.
Rubicon joint chief executive Max Carruthers said the sale took place "against the backcloth of it never being our intention to create our own risk-carrying vehicle - we are experts in providing outsourced services and solution".
He added: "The sale of Link Underwriting Agency to a dedicated and experienced insurer, and, in turn, the creation of Link's own capacity base, will provide an excellent platform for the business to build upon and grow."
