Inflexion Private Equity, is authorised and regulated by the Financial Conduct Authority, has completed a minority investment in Granite Underwriting, a specialist motor insurance business.
The investment is being made by Partnership Capital Fund I, Inflexion’s dedicated minority investing fund.
Established in 1982, Liverpool-based Granite comprises a number of brands which distribute specialist motor insurance, catering to drivers of private hire taxis, black taxis, Uber and other large operators in the sector as well as specialist cover for private car and light commercial vehicles.
Its services are marketed through retail branches, price comparison websites, brokers, its own website and a call centre. Granite’s core strength is its data-driven business model, combined with control of the full value chain including distribution, underwriting, claims handling, premium finance, investment management and vehicle hire.
The motor insurance market is estimated to be worth £16bn in the UK, with Granite underwriting over £220m in 2017. Granite is the clear market leader in the specialist space, with a 25% share of the UK taxi insurance market.
Following Inflexion’s investment, the business will continue to be run by the existing management team led by founding shareholders Alan Keating and Martin Gowing.
Granite Underwriting managing director and co-founder Alan Keating said: “I am delighted to have found a partner with relevant industry expertise, as well as a strong understanding of how digital enhancement can help improve our business. These traits combined with their experience as a minority investor made them the right backer for us as we look to increase our market share further.”
Inflexion managing partner Simon Turner said: “The management of Granite stand out as talented and ambitious in an industry we know well. Their unique and differentiated business has proven adept at catering to specialist segments within the insurance space to deliver market leading products and we look forward to helping them innovate and grow further.”
Source: Company Press Release