RSGC Buys Part Of Dashwood, Brewer & Phipps
NU Online News Service, June 23, 12:29 p.m. EDT?RS Group of Companies Inc. said it has acquired a 49 percent interest in Dashwood, Brewer & Phipps, Ltd., a Lloyd's and London Market Insurance Broker based in London.[@@]
Terms of the deal were not released.
RS Group, formerly known as Rent Shield Corp., based in Toronto, said the deal is expected to yield more than $4 million annually in minority income from the broker.
RS Group said the acquisition would provide the firm with a method to recapture brokerage expenses on placements of insurance related to its business operations, including its recently launched residential rental guarantee program.
Under the terms of the transaction, RSGC will place insurance in the London and Lloyd's markets through Dashwood. RSGC will pay Dashwood ?1.5 million ($2.7 million U.S.), which will be funded by brokerage commissions earned by Dashwood from insurance placed by RSGC.
Through its equity position, RSGC said it would recover 49 percent of the estimated $8 million of brokerage expenses on business it expects to place through Dashwood.
RS Group of Companies' core product, the RentShield Residential Rental Guarantee Program, provides insurance to landlords for tenant failure to pay rent, damage to apartments, and assumes expenses for evictions. The product also provides other administrative services for landlords and tenants.
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