Pictured: Catherine Wall
Barclays Private Equity ('BPE'), one of Europe's leading
mid-market private equity firms, today announces the sale of
FirstAssist Insurance Services Limited ('FirstAssist Insurance' or
'The Company'), a leading provider of bespoke insurance solutions,
for £71m, to Cigna (NYSE: CI), a global health service and
financial company providing an integrated suite of health, life and
accident services. The sale has been part-led by Birmingham-based
BPE director Catherine Wall.
FirstAssist Insurance Services is a principal UK white labelled
insurance provider, employing 480 people at its headquarters in
Sutton, Surrey and offices in Plymouth and Bournemouth. The Company
delivers travel, budget health, protection and legal insurance
products for financial institutions, retailers and affinity groups
to provide to their customers mainly under their own brands.
Before-the-event (BTE) legal expenses insurance and other legal
protection products and services are provided through FirstAssist
Legal Protection Ltd which is another company in the Group.
FirstAssist Insurance Services has significant expertise in
developing and maintaining profitable, long-term partner
relationships and its clients include many household
names.
BPE retains ownership of the after-the-event legal expenses
provider FirstAssist Legal Expenses Insurance Ltd which was
demerged from the Group in February 2011. After-the-event (ATE)
legal expenses is a specialist policy marketed through
solicitors.
FirstAssist Insurance Services was acquired by BPE and its
management team in 2003 as part of the larger £147m
management buyout of FirstAssist Group from Royal & Sun
Alliance. BPE has driven a programme of significant structural and
strategic change. The business initially offered a range of
products covering private medical insurance, budget health and
travel insurance, legal expenses insurance and Health and Wellbeing
services to corporates and insurers. The Private Medical
Insurance division was sold to Standard Life Healthcare in 2006 for
£25m, and the Health and Wellbeing services provider
FirstAssist Services Holdings was sold to Capita plc for
£12.5m in 2010, after a turnaround from losses to
profits.
Under BPE's ownership, FirstAssist Insurance Services has
strengthened its personal and commercial product range, focusing on
tailoring insurance products for white label clients and offering a
seamless outsource insurance operation. In its financial year to 31
December 2010, the holding company for FirstAssist Insurance
Services reported operating profit of £5.8m on net earned
premiums of £153m.
BPE's investment in FirstAssist Group was made by BPE Fund I and
the exit of FirstAssist Insurance Services represents the 35th
successful exit from that Fund, which has generated strong returns
for its investors. It is the ninth successful exit in as many
months for BPE which has also realised investments in Converteam,
Femcare, Gerflor, Jack Wolfskin, Karavel-Promovacances, Martek
Power Group, Siteco and Webhelp.
Commenting on the deal, Martin Totty, Group Managing Director of
FirstAssist Insurance Services said:
"Barclays Private Equity has been an excellent partner in
developing the business over the last eight years, supporting us in
building a profitable, sustainable business. We have made great
strides in the travel insurance sector, gaining market share and
improving profitability. Cigna is an excellent new owner of
the business, bringing access to wider distribution and additional
product lines and a long term commitment to growing the business
further as well as extending FirstAssist propositions to other
Cigna markets. "
BPE Director Catherine Wall, based in BPE's Birmingham office,
said:
"The sale of FirstAssist Insurance Services represents the near
total disposal of our original 2003 investment, and we are pleased
with the results of our investment strategy to split the business
into more specialist separate companies, and to find different
buyers for each of them"
This exit was led by Catherine Wall and Andrew Backen of BPE,
the original investment was led by Owen Clarke. They were supported
by Sue Woodman, internal legal counsel. Completion is subject
to standard regulatory clearances. BPE was advised by Clifford
Chance (legal); Hawkpoint (financial adviser); PwC (financial due
diligence); KPMG (actuarial due diligence). Cigna was advised by
Hogan Lovells (legal). FirstAssist Insurance was advised by Grant
Thornton (tax) and Travers Smith (legal).