Zurich Financial Services Group said it has signed an agreement to purchase all of the remaining shares in the insurance brokerage firm Endsleigh, based in Gloucestershire, England. Transaction terms were not released.
The Zurich-based insurer said that after acquiring 45 percent of Endsleigh's stock in 2002, Zurich would now buy the rest of the shares held by the management team, as well as the shareholdings of the National Union of Students (NUS). The NUS represents 5.3 million students.
According to the NUS Web site, the volunteer organization represents local student representative organizations in the United Kingdom and Ireland that have chosen to affiliate.
In line with the carrier's strategy to strengthen and refine distribution capabilities, the company said the acquisition would improve access to NUS's young customer base, generating new opportunities for profitable growth in the personal line segment.
In recognition of the strategic importance of its market to Endsleigh, NUS will retain two seats on the board.
Dieter Wemmer, chief executive officer of Europe General Insurance, said, “The acquisition of Endsleigh underpins our goal to become a leading pan-European insurer, delivering solutions to our customers in the way they wish to be served.”
Guy Munnoch, Zurich's UK general insurance chief executive officer designate, added, “With a business turnover [revenue] of ?60 million [U.S. $118 million], Endsleigh has exceeded its goals in the past, and we expect it to generate excellent results in the future.”
Mr. Munnoch said, “The acquisition of Endsleigh supports Zurich's multi-distribution strategy, and we are excited about the opportunities for profitable growth this deal offers. It also demonstrates Zurich's commitment to and strong belief in the long-term future of the intermediary channel in the UK.”
Zurich said it intends to retain the current management team and the Endsleigh name. Endsleigh will continue to operate as an independent broker.
The carrier said the purchase is expected to close in January.
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