Purchase of £30m GWP Midas will also enable RDG to expand insurer relationships
Ryan Direct Group (RDG) is planning to buy Northern Ireland-based managing general agency (MGA) Midas Underwriting.
RDG chief executive Derek Coles said the acquisition would give the broker and MGA extra capability in niche and specialist lines in home, motor and commercial.
RDG has experience of specialist and niche motor with a young drivers product.
The partnership will also enable RDG to build relationships with insurers that it does not do a significant amount of business with.
Coles said: “Midas is a specialist business, like RDG, and the Midas book complements our portfolio in SME, property owners and landlords, and additionally supports our medium-term aim of creating a balanced commercial and personal lines book.
“We look forward to working with Midas’s capacity providers, including AXA, Ageas and KGM, to deliver accelerated growth and profitability across all business lines.
“The acquisition marks RDG’s first significant foray into the niche and specialist motor market. Outside of standard motor, which is competitive for us to play in, the specialist areas makes sense.”
Midas expects to write more than £30m in gross written premium (GWP) in its current financial year. Its business covers mainland UK, Northern Ireland and the Southern Irish markets.
Midas managing director Alan Hunter said: “This acquisition by RDG is a huge vote of confidence for our business and our people.
“It strengthens our position as a leading player in the Northern Ireland and Irish market, and will give us added financial strength to accelerate growth under the RDG brand.”
Coles added: “Midas gives us access to the Northern Irish market, which is a specialist market, and broader access to the Irish market in pushing south to the eurozone.”
The deal is expected to be completed in the first quarter of 2016. Financial details have not been disclosed.
As a result of the acquisition, RDG non-executive director Paul Donaldson will also become chairman of Midas.
The Midas name will be kept as RDG’s non-standard brand.