Ockham Holdings has outlined plans to expand its motor sector through the acquisition of Link Insurance Services.
In March, Lloyd's syndicate Kiln announced it was considering selling Link, its Maidstone-based subsidiary, as part of a strategic review of its operations. Approximately 80% to 85% of its business is motor, while the remainder comes from personal lines.
Now Ockham has signed heads of agreement to buy Link, which has a gross premium income of £50m. The deal is anticipated to be completed in September, but is subject to regulatory approval.
Chief executive of Ockham and chairman of its motor subsidiary Highway, Lord David Poole, said: “One of our long-term goals is to become a specialist motor insurance company and Link is a perfect fit geographically.”
Highway currently has 650 staff, while Link employs 200 people. Poole has indicated “there is no intention of any job losses”.
“It is giving us an opportunity to acquire where we would have taken a long time over organic growth,” he said. “We want to keep the Link brand approach and a sensible degree of independence.”
Under the new plans, Ockham will pass over its £5m household business to Link.
It will also invest capital in updating Link's information technolgy.