Premium Credit Limited are a well known name in the insurance industry, branding themselves as the ‘No.1 Insurance Premium Finance Company in the UK’.
With years of success in the market we knew the purchase would be for a great sum. In a report released today it states that private equity firm GTCR sold the company to Cinven for 462 million pounds ($700 million).
Although a colossal sum we cannot help but think back to when we heard the news of the company being up for sale with the Wall Street Journal stating the private equity firm to want more than $800 million for the firm.
What Premium have to say
Andrew Doman, Chief Executive of Premium Credit, said:
“We are delighted to be working with Cinven who, given its strong track record and expertise in the UK financial services sector, will be instrumental in helping to expand the Premium Credit platform, providing our clients with new products and services.
I would also like to thank our previous owners, GTCR, for the contribution they have made to our success over the last 2 years. There is no question that the new investment injected by GTCR has helped us reinvigorate our business and improve the service that we offer.”
Commenting on why PCL appealed to Cinven, Maxim Crewe, Partner, added:
“Premium Credit is the market leader within the UK insurance premium finance market with strong risk management, cash generative characteristics and a proven management team. The Company provides us with an exciting platform from which to capitalise on growth opportunities in the broader UK specialty finance market through the expansion of the Company’s existing product portfolio, new product launches and selective acquisition opportunities.”
Let us know your thoughts on this story. Do you think this it is a good move for Premium?