Insurance companies and industry suppliers are anxiously waiting to see what will happen to top 30 intermediary Kwik-Fit following its sale by Ford this week.
Kwik-Fit, the car servicing chain tha ...
Insurance companies and industry suppliers are anxiously waiting to see what will happen to top 30 intermediary Kwik-Fit following its sale by Ford this week.
Kwik-Fit, the car servicing chain that also sells insurance, was sold for just £330m.
Kwik-Fit sells motor, travel, breakdown and household and contents cover.
It uses a panel of 19 insurers to underwrite its business, which it sells by phoning the 10,000 people who visit its service centres every day.
The company declined to comment on whether the sale would lead to a review of its panel, business strategy or management.
The sale came after the discovery of accounting irregularities in June.
Ford struck a cash deal with CVC Capital Partners, a private equity firm. It is expected that the capital provider will look to make money from disposals and business streamlining.
And that could mean the sale of its insurance broking arm or a radical shake up of its existing system, market sources said.
Ford had paid £1bn for the chain in 1999 and had hoped to raise £800m from the disposal. It will keep a 19% stake in the servicing chain.
Kwik-Fit Insurance Services, the broking branch of the business,ranks 30th in the Insurance Times Top 50 Brokers.
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