Transaction Reports DirectAsia

Hiscox to acquire DirectAsia

Legal advisor to the Hiscox: Financial due diligence: Financial advisor: Hiscox to acquire DirectAsia Hiscox, the global specialist insurance

group, recently announced its agreement with Whittington Group, the Singapore- headquartered insurance

services and

investment business, to acquire its direct- to-consumer online operation DirectAsia, subject to regulatory approval.

Legal advisor to the Whittington: Financial advisor: Virtual data room provider:

DirectAsia was founded in Singapore in 2010 and launched into Hong Kong in 2012 and Thailand in 2013. Its primary business is motor, one of the few non-discretionary insurances in Asia, with ancillary lines in travel, personal accident, healthcare and life. DirectAsia has a strong business model, operates in markets where agent based channels with high distribution costs predominate, and uses market leading rating mechanisms. It has over 54,000 customers, employs 140 people across the three locations in which it operates and in 2013 had gross written premiums of USD25.3 million.Bronek

Masojada, Hiscox CEO, commented: “DirectAsia is a challenger brand with real potential. It gives Hiscox a 21st century distribution platform in Asia that leapfrogs traditional routes to market. DirectAsia complements our direct-to-consumer businesses in Europe and the US, and in time, we will use it to distribute Hiscox products.”

Anthony Hobrow, CEO Whittington Group, said: “ We are very pleased that we have been able to pass this unique platform to Hiscox who can supply expertise, capital and a strong customer focussed culture to help us further develop and grow the business.”

The business will continue to operate under the DirectAsia brand and with the existing local management team, which will be led by Steve Langan – Hiscox UK and Europe MD and now CEO of DirectAsia Group.

Infinity Agency Limited Capita Commercial

Insurance Services Limited investment in Infinity Agency Limited

Legal adviser to Capita Commercial Insurance Services Limited: Capita invests in Infinity Agency Limited

Capita Commercial Insurance Services (Capita) recently announced the conclusion of a transaction to finance the development of Infinity Agency Limited, a managing general agent (MGA) which specialises in high net- worth motor insurance, by taking a minority equity stake in it. As part of the transaction, Capita will provide business outsourcing services to the MGA through a long-term contract.

Reinsurance intermediary and adviser to Infinity:

This is Capita’s second investment in a MGA and is part of a strategy to build a portfolio of minority equity stakes in MGAs to which it also provides business process outsourcing (BPO) contracts. This is the first in a pipeline of transactions expected to be finalised during the course of 2014, as Capita’s investment in MGAs, which started just over 12 months ago, gathers pace.

John Holm, executive director of Capita Commercial

Insurance Services said: “There is significant activity in the MGA market and our strategy of investing in specialist, high-quality businesses with experienced management teams and providing advice and business process outsourcing to them is proving attractive.”

Holman Fenwick Willan Partner Ashwani Kochhar and Associate Will Reddie advised Capita on the investment.

HFW also advised Capita on its first investment in a MGA. In a deal that was widely publicised in 2013, Capita took a stake in Cobalt Insurance Holdings in order to finance the launch of Shariah-compliant MGA Cobalt Underwriting Services.

Global reinsurance intermediary Aon Benfield ReSolutions advised Infinity and acts as its broker. Infinity’s capital is provided by Markerstudy, a specialist motor insurer.

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