Davies has also signed a long-term claims management deal with Ardonagh
Davies Group has announced the acquisition of Ardonagh-owned Direct Group’s claims businesses.
The group today said the deal, costing up to £36m depending on performance, would add new depth to its claims capability across multiple specialty and niche lines, as well as property contents validation platform, Valid8.
Davies chief executive Dan Saulter last week told Insurance Times an opportunity was alive to adding capacity to its claims business.
Under the deal, Direct Group’s claims business will join with Davies’ Claims Solutions business, which will continue to be led by executive chairman Darren Coombes and chief operating officer Kath Mainon.
Direct Group’s managing director of claims, Russell Crewe will join Davies’ executive leadership team, reporting directly to Mainon.
Saulter said he was excited to welcome Crewe and the Direct Group team to Davies.
He added: “We have worked with Direct Group as a partner and a client over many years and we believe our track record of developing our people, investment in technology, and a focus on innovation will mean lots of new opportunities for staff and for client delivery.”
Claims management deal
Alongside the acquisition, Davies and Ardonagh have announced a long-term claims management deal that will see Davies continue to support Ardonagh’s underwriting and broking businesses in claims handling, loss adjusting and fulfilment.
Saulter added: “We are thrilled to announce our new long term deal to support (Ardonagh chief executive) David Ross and the wider team right across Ardonagh, with their claims delivery as they continue to grow their business in the years ahead.”
Ross added: “Under the ownership of Davies, Direct Group’s claims operation will be completely at home within one of the leading claims and insurance service providers, and will undoubtedly benefit from the combined expertise, investment and ambition that Davies has in this specialist market.
“We’re incredibly proud of the value the team have delivered as part of The Ardonagh Group and we look forward to continuing our strong relationship with the team, and further building our relationship with the wider Davies business.”
The deal marks Davies third deal of 2018 after adding insurance services and captive management capability through the acquisition of JMD, Requiem and Quest in January this year; and most recently adding Ember, a leading customer experience consulting and digital solutions business.
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