Towergate Acquires Paymentshield In High Growth Deal
Towergate, Europe's largest independently-owned insurance
intermediary, today announces the acquisition of Paymentshield, a
leading supplier of mortgage-related general insurance products to
the intermediary sector.
Paymentshield has an annual gross written premium in excess of
£200m and recorded profits of £14.5m in 2005/2006.
Within the last three years it has tripled the number of
mortgage general insurance policies sold, and has established
itself as the sector’s market leader for buildings & contents
and MPPI business.
Paymentshield has ambitious growth plans for the business, which
will be supported by the scale, skills, strong underwriting
relationships and access to capital Towergate can provide.
As part of its commitment to supply highly competitive products,
Paymentshield has also reviewed its underwriting contracts.
It has appointed Royal & SunAlliance to become its buildings
and contents insurance underwriter, while Norwich Union will
underwrite MPPI products. DAS will become responsible for
underwriting home emergency and legal cover.
Paymentshield's management team, led by chief executive Stuart
Pender, is to stay on following the acquisition.
Head office will remain in Southport, with the 300 staff moving
to new, purpose-built offices in the town during the course of Q1
2007. In addition, Paymentshield also intends opening a new office
in the Edinburgh area.
The deal represents a successful exit for Bank of Scotland
Corporate who backed the original buy-in in 2004 as the single
largest investor.
Peter Cullum, Towergate's Executive Chairman, explained: "The
acquisition of Paymentshield will add significant scale and
expertise to our exsisting offer to mortgage advisers.
"We are wholly supportive of the Paymentshield management team,
who have achieved remarkable growth in this business and we believe
will continue to do so – this business could realistically double
within three years."
Commenting on the deal, Stuart Pender, Chief Executive of
Paymentshield, said: "This is a very exciting new phase in
Paymentshield’s development.
"We have built our business on our commitment to offering a
highly competitive and compelling proposition in the intermediary
market, and Towergate is the ideal partner to support us in
continuing to develop and enhance this proposition."
Media Contacts
Russell O'Connor
Group Communications Manager
Towergate
Tel: 01622 656782
Mobile: 07760 282586
Email: Russell.o'connor@towergate.co.uk