UK Insurer First Central Weighs Sale That Could Value Business at £600M: Sources

By | January 27, 2022

British insurer First Central Group Ltd. is considering a sale that could value the business at about 600 million pounds ($800 million), people with knowledge of the matter said.

First Central Group is working with Evercore Inc. as it prepares to gauge interest from potential buyers, according to the people, who asked not to be identified because the information is private. It could kick off a sale process as soon as the second quarter, the people said.

The company, which employs more than 1,000 people, underwrites car insurance under the Skyfire brand and owns insurance brokerage 1st Central. First Central Group was founded in 2008 to take advantage of new ways of selling coverage to U.K. drivers following the rise of price-comparison websites. It’s led by Michael Lee, a former executive at Hastings Group Holdings Plc.

First Central Group is likely to attract interest from private equity firms, the people said. Deliberations are ongoing, and there’s no certainty they will lead to a transaction, according to the people.

Representatives for First Central Group and Evercore declined to comment.

–With assistance from Benjamin Robertson and Dinesh Nair.

Photograph: Traffic light trails on the A27 dual carriageway in Brighton, UK. Photo credit: Chris Ratcliffe/Bloomberg

Topics Carriers

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