The Capita Group, a provider of integrated professional support service solutions in the UK, has confirmed that it has acquired CMGL, a provider of outsourced claims and insurance management services to FTSE quoted corporations, general insurers, Lloyd's underwriters and London Market companies.
The total consideration for the purchase amounted to GBP32 million on a cash-free/debt free basis. CMGL employs over 440 staff members based in London, Cheltenham, Birmingham and overseas, and provides professional claims and insurance management services to a wide range of insurance and corporate clients. The acquisition will build on Capita Insurance Service’s existing London Markets capability.
Commenting on the deal, Paul Pindar, Capita chief executive said: Its acquisition will allow us to offer our customers complete end-to-end services in both the live and run-off markets. Building this sort of capability is particularly important given the challenges set out in the London Market reform as well as the cross market desire to introduce truly world class business processes.
We intend to merge CMGL with our existing London Market operations, which will create significant economies of scale and will help to ensure that London remains at the heart of the world’s insurance industry.
The deal has received approval from the UK regulatory body FSA and Lloyd’s.