Clegg Gifford has acquired Westminster, adding to the London market broker's motor insurance business.
The acquisition will make “it the country’s largest specialist motor trade broker”, said a statement from Clegg Gifford.
Together with Tradex Insurance Group, its sister company, the combined entity has almost £70m gross written premium.
Westminster has acted as the direct distribution business of Tradex, which acquired Westminster’s book of taxi insurance business in May 2008.
Tradex retained the Westminster brand after that deal, and apart from business attached via their brokers, all taxi business has been underwritten as Westminster Insurance.
The acquisition cleans house for Lloyd’s broker Clegg Gifford: leaving Tradex as a pure underwriting company, which it says will benefit its capital position for the EU’s incoming Solvency II regulations for the insurance sector.
“This gives us a national footprint and distribution network throughout the country,” said Toby Clegg, director of Tradex Insurance and Clegg Gifford.
“We hope to expand the product range offered by the 45 Westminster agents, who are all excited to be part of a broker.”
The deal was supported by a £11m senior debt facility from Investec. Concord Corporate Finance was the corporate finance adviser on the deal.