Ardonagh sells Direct Group claims business for £36m to Davies Group

Insurance service provider Davies Group has acquired the claims business of Ardonagh-owned Direct Group while signing a long-term claims management deal with the UK-based insurance intermediary.

Ardonagh said the deal will be valued at up to £36 million “dependent upon performance” and the proceeds of the sale will be used for further investment within the group.

Direct Group’s claims business will be added to Davies’ claims solutions business. The combined business will be led by executive chairman Darren Coombes and COO Kath Mainon. Direct Group’s managing director of claims Russell Crewe will join Davies’ executive leadership team, reporting directly to Mainon.

The six-year agreement made as part of the deal will see Davies provide claims management services to Ardonagh’s underwriting and broking businesses.

“Under the ownership of Davies, Direct Group’s claims operation will be completely at home within one of the leading claims and insurance service providers, and will undoubtedly benefit from the combined expertise, investment and ambition that Davies has in this specialist market,” said David Ross, chief executive officer of the Ardonagh Group.

“Today’s announcement will allow us to accelerate investment in our strategic priorities as a group and we look forward to continuing our strong relationship with DG’s claims business in the future as part Davies Group,” Ross added.

Direct Group CEO Derek Coles said: “Our claims operation has gone from strength to strength since its creation in 2007, earning a reputation for first class customer service and now delivering significant value as part of Ardonagh. I’m incredibly proud of the business we have built, and now creating this new opportunity for the claims business to thrive and prosper in future.”

The acquisition expands Davies’ claims capability across multiple specialty and niche lines, as well as adds a property contents validation platform Valid8. Earlier in the year, Davies reorganised its business, creating three operating platforms across claims solutions, insurance services and customer solutions.

Dan Saulter, group chief executive officer of Davies, commented: “I am excited to welcome Russell Crewe and the Direct Group team to Davies. We have worked with Direct Group as a partner and a client over many years and we believe our track record of developing our people, investment in technology, and a focus on innovation will mean lots of new opportunities for staff and for client delivery. In addition, we are thrilled to announce our new long term deal to support David Ross and the wider team right across Ardonagh, with their claims delivery as they continue to grow their business in the years ahead.”

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