DCG’s founder and chief executive will remain the majority shareholder
Private equity company CBPE Capital has completed its investment into Direct Commercial Group, which consists of MGA Direct Commercial Limited (DCL) and commercial fleet specialist Carraig Insurance Company.
Carraig is based in Gibraltar. DCL bought the entire share capital of specialist claims handler TCM Advisors in June 2017, which has since been the claims handling agent for Carraig.
DCG’s founder and chief executive Phil Cunningham will remain the majority shareholder of the business.
Cunningham said: “I founded the business almost 20 years ago and we have seen strong growth and consistent profits for our capacity providers, whilst at the same time being at the forefront of product development and service levels for our policyholders and broker partners.
“In order to continue the businesses’ development, it was the right time to bring a supportive private equity partner into the business as [a shareholder].
”CBPE [is an] experienced [investor], with a strong financial services track record and I look forward to our partnership over the next few years.”
Next phase of growth
Established in 2002, commercial motor insurance specialist DCL is headquartered in Chelmsford, but also has a London office. Overall, it currently employs 145 people.
As a full service MGA, DCL provides underwriting services, policy administration and in-house claims handling.
The group also includes Carraig Insurance Company, an insurance carrier based in Gibraltar, which provides insurance capacity to DCL alongside Munich Re Group.
Mathew Hutchinson and Richard Thompson, partners at CBPE, added: “We are very excited about our investment in DCG. Through its dedicated focus on commercial motor over a sustained period, Cunningham and the management team have built a very strong business.
“We look forward to supporting the team and taking the business through the next stage of its growth.”
Hutchinson and Thompson led the investment.
Direct Commercial was shortlisted as a finalist in the Insurance Times Awards 2020, in the Marketing Campaign of the Year – B2B category.