PI Direct has announed a merger with Saturn Professional Risks worth £55m GWP.
The new holding company is owned by the management of both companies and new investors Penta Capital.
Although both PID and Saturn will continue to operate independently, the companies claim, the new group will be the largest specialist professional indemnity (PI) underwriting agency in the UK, with combined gross written premium of £55 million.
Both PID and Saturn have been servicing the SME professional market in the UK for the past seven years, through different and largely separate regional broker channels.
According to both companies, the new venture is not only able to exploit the synergies between the two firms, but also will provide the Saturn brokers with access to PID's solicitors and IFA capacity.
Further, Saturn will get access to PID's claims handling model allowing the Saturn brokers and insureds to benefit from in-house specialist PI solicitors.
PID's in-house solicitors handle claims through to trial where necessary and achieve considerable cost savings compared with conventional insurers, not only on saving external solicitors fees but also in resisting nuisance claims.
Together the two companies will service some 15,000 professional indemnity policyholders, an estimated 10% to 15% market share by number.
PID and Saturn have a common capacity provider in Hiscox Insurance. Hiscox is both continuing the existing underwriting capacity arrangements and, in certain areas, extending its support of the combined entity. Hiscox will now provide 100% capacity for the Saturn book, the company added.
The holding company Board comprises the existing executive directors of both operations together with a representative from Penta. Saturn has 25 employees in Chesham, Buckinghamshire and PID has 65 staff located in Caveat House, London, EC3.
