Markerstudy hopes new powerhouse MGA will reach £1bn in GWP by 2021
Markerstudy is eyeing the acquisition of MGAs to grow its new powerhouse MGA to £1bn in GWP.
Newly formed Markerstudy Insurance Services Ltd (MISL) is now the UK’s largest MGA, writing £800m after a consolidation of the group’s MGAs.
But group underwriting director Gary Humphreys revealed he wants MISL to hit £1bn GWP within three years, driven by acquisitions, including two he hopes will be completed in 2018.
“Some of our growth will be organic, but acquisitions are definitely on the agenda. We’re looking at a couple of opportunities at the moment,” Humphreys said.
“Across the business we are open to lots of opportunities. That could be acquisitions in the broking sector, in the MGA sector or even the underwriting sector.
“If we have our way there will definitely be some this year.”
The consolidation is set to drive greater efficiencies in the MGA business, bringing with it cost savings.
But Humphreys denied this would result in any job losses or lost business. He revealed the efficiencies would primarily be within the areas of systems and IT, as well as by re-platforming some of their business in the direct sector.
He said: “With our growth and acquisition plans we’ll need all the staff we’ve got and possibly some more.”
And he added: “With this deal we think we’ll be able to attract more business because it simplifies our trading structure.
“Some of the brokers previously didn’t have access to all of our products, but our plan going forward will be that if they have a trading facility with an MGA then they will have access to all of the products via their system rather than with just Markerstudy, Zenith or Zenith Marque.
”We’re bringing all that together and the products back together.”
The move to consolidate Markerstudy Ltd, Zenith Insurance Management UK Ltd and Zenith Marque Insurance Services Ltd follows on from the announcement made last year to transfer its insurance business to Qatar Re.
Humphreys said the relationship had been nothing but “positive”.
He added: “They have big plans for the UK as well which we are at the forefront of, so it’s a symbiotic partnership in that sense.”