The deal will enhance Gallagher’s digital capabilities and expertise in motorcycle and motorhome cover

Affinity-led Gallagher has expanded into the motorbike and motorhome sector by snapping up broker Devitt Insurance Services.

Gallagher’s UK retail division chief executive Michael Rea told Insurance Times that the deal is a big boost for Devitt because it can now cross-sell into Gallagher’s wider client base. 

Gallagher, on the other hand, will benefit from Devitt’s established affinity partnerships, which include relationships with organisations such as The Caravan and Motorhome Club and BMW Motorrad.

Devitt, based in Romford and Ipswich, will also enhance Gallagher’s digital capabilities by bringing “expertise” and “niche products into the market”, as the broker does not “want to compete” when it comes to providing general products in the personal lines space, said Rea.

Devitt’s managing director William Hughes and finance director Tony Chapman, who oversaw a management buyout of the business from the Royal Bank of Scotland in 2011, will remain with the firm post-acquisition.

Devitt currently employs 130 staff and has around 130,000 customers.

Amplifying organic growth

Rea, who has known the managing team at Devitt for several years, said that one attraction for the deal is because motorhomes and bikes are not in a “over congested marketplace”.

He continued: “We are delighted to welcome the Devitt team to Gallagher.

“The business has a great reputation for customer service and its specialisms in motorhome and motorbike are a great fit for our business.

“In any transaction, we always look for like-minded people and I am confident that as part of Gallagher, the Devitt team and business will flourish.

“It’s got a really good organic story of growth and that’s the thing that we want to build on and amplify through 2022 and beyond.”

Rea noted that the M&A “process has gone remarkably smoothly” so far, with the deal receiving regulatory approval last week, which “came through in line with our expectations”.

He added: “The nice thing about Devitt is it’s a really clean business and it’s really well run.

“Once you come across a business like that, it makes the due diligence process a lot more straightforward.”

Rea further explained that an important step in cementing the acquisition will be to talk to Devitt’s staff and help them understand what Gallagher can do for the business - he said his team followed up on this yesterday afternoon (1 January 2022).

Devitt’s Hughes said: “We are very pleased to find a permanent home and a fantastic partner for our business.

“The Gallagher team share our values and their focus on great client service fits well with what we do best – looking after our customers.

“It’s fantastic news for our team that we will be part of a market-leading global broker going forward and this partnership will enable us to continue our track record for growth and provide a springboard for further success.”

The deal was completed using an advisor-led process, which started in September 2021.