Global Risk Partners, the acquisitive insurance broking and managing general agency (MGA) investment vehicle, has agreed to back the management buyout of LONMAR Global Risks, the specialist Lloyd’s broker. The transaction is subject to regulatory approval.
LONMAR’s management team, led by David Pexton, chief executive, will continue to lead the independent Lloyd’s broker.
“Our MBO provides an excellent platform to fast track our growth agenda and will benefit our clients, staff and insurer partners,” said David Pexton, chief executive of LONMAR, which is headquartered in London.
“With GRP’s backing we will significantly accelerate our strategy with the acquisition of individuals, teams and businesses, whilst maintaining our emphasis on providing the quality service and innovative approach that our clients expect from us. The whole team is very excited about the prospect of partnering with GRP and taking LONMAR to the next level.”
“We are delighted to be supporting David and his team. LONMAR brings us a strong Lloyd’s broker with an excellent reputation, led by a dynamic and motivated management team,” according to David Margrett, chief executive of London-based Global Risk Partners.
“Their strength, expertise and brand in the specialty and agency marketplace are highly complementary to the other GRP businesses and particularly to [Ropner Insurance Services], which we acquired last year,” Margrett continued.
“Ropner has shown excellent growth in its core markets of marine, cargo and reinsurance. GRP’s investment in LONMAR, alongside Ropner, means that we are now among the largest independent Lloyd’s broking groups, covering a wide range of specialty areas that will be of benefit both to our existing clients and to our growing network of regional brokers,” he affirmed.
“We have a strong pipeline of opportunities and expect to announce further investments over the next few months.”
Peter Cullum, chairman of Global Risk Partners, said: “This latest investment adds to the impressive list of transactions that we have completed since the formation of the group at the end of 2013 and brings the run rate EBITDA in our businesses to over £10 million [$14.5 million]. While still in its infancy, GRP now manages GWP in excess of £350 million [$508.9 million], with an ambition to see this grow to over £500 million [$727 million] by the year end, making it one of the fastest growing businesses in the broking sector.”
About LONMAR and Global Risk Partners
Established in 1977, LONMAR serves a client base in over 70 countries, providing intermediaries and brokers with solutions for large-scale, complex and specialist risks, including accident & health, agencies, binding authorities, bloodstock, casualty, fine art, specie, marine, professions and property.
Global Risk Partners was established in 2013 by Peter Cullum, chairman of GRP, and David Margrett, chief executive of GRP, who was previously president of Willis Global and chairman and CEO of Willis Ltd. GRP is backed by private equity firm Penta Capital LLP. Global Risk Partners focuses on acquiring businesses and teams that have niche, non-commoditized and specialty focus.
Topics Mergers & Acquisitions Trends Agencies Excess Surplus Lloyd's
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