One of the major players in the UK's freelancer insurance market, Kingsbridge Group announced the sale of its business and the exit of a big investor
Kingsbridge Group brokers insurance for contractors and freelance workers (Credit: PxHere)
Kingsbridge Group has announced the sale of its business to Pennsylvania-based NSM Insurance Group for an undisclosed figure.
The company is a major broker in the UK contractors and freelancers insurance market, backed financially since 2016 by private equity firm Dunedin, which will no longer invest in its future, referring to the situation as a “strong exit”.
NSM will gain the primary specialist insurance broking business from Kingsbridge, as well as two major acquisitions — insurtech start-up Dinghy and insurance and tax services provider Larsen Howie — made between 2018 and 2019.
Kingsbridge Group CEO James Twining said: “Kingsbridge has grown to become one of the leading players in the new, flexible economy.
“Dunedin has played a major role in supporting our development over the last three years, providing capital and insight as an experienced financial services investor.
“We are delighted to be joining NSM, who share both our values and our vision for how the world of work is changing and the significant opportunities that lie ahead.
“With the benefits of their investment and experience, we look forward to enhancing our offering to clients and accelerating the next stage of our journey both in the UK and internationally.”
Dunedin made a £33m ($38.5m) investment in Kingsbridge group back in 2016, buying out the shares of competitor Livingbridge.
Oliver Bevan, a partner at the private equity firm that sits on the board at Kingsbridge Group said: “During the last three years, Kingsbridge has successfully delivered on its goal to become a market leader in the provision of financial services to the contractor and freelancer community, and we are delighted to have been part of its rapid growth.
“Investing in its people, distribution channels and technology, the company has doubled its revenues and customers in just three years and created a suite of brands and distribution platforms with which to address the needs of a rapidly growing flexible workforce in the UK and overseas.
“We strongly believe in the future of this business and are confident that NSM will support the company’s continued growth.
NSM CEO Geoff McKernan said: “We are excited to expand further in the UK with the acquisition of Kingsbridge, which fits nicely into NSM’s portfolio of niche-focused insurance businesses.
“We look forward to working with James and his team and to providing them with support and resources to continue to grow the business.”
Subject to regulatory approvals, the deal between Kingsbridge Group and NSM is expected to close by the end of the second quarter of 2020.
Dunedin is keen to invest in other niche insurance after Kingsbridge Group sale
Since it will exit Kingsbridge Group after its sale, Dunedin is now looking for other niches within the insurance market.
Bevan said: “Dunedin has a good track record of investing in specialist insurance and is actively looking for other UK-headquartered insurance businesses with strong management teams and a market-leading position within their niche.
“We have expertise in helping to grow these types of businesses through investment in sales and marketing, internationalisation and acquisitions, in order that they can become market leaders.”