Global Risk Partners, the acquisitive Insurance Broking and Managing General Agency (MGA) investment vehicle, has agreed to back the management buyout of LONMAR GLOBAL RISKS (LONMAR), the specialist Lloyd’s broker. The transaction is subject to Regulatory Approval.
LONMAR’s management team, led by David Pexton, Chief Executive, will continue to lead the independent Lloyd’s broker.
David Pexton, Chief Executive of LONMAR said: “Our MBO provides an excellent platform to fast track our growth agenda and will benefit our clients, staff and insurer partners. With GRP’s backing we will significantly accelerate our strategy with the acquisition of individuals, teams and businesses, whilst maintaining our emphasis on providing the quality service and innovative approach that our clients expect from us. The whole team is very excited about the prospect of partnering with GRP and taking LONMAR to the next level.”
David Margrett, Chief Executive of Global Risk Partners said: “We are delighted to be supporting David and his team. LONMAR brings us a strong Lloyd’s broker with an excellent reputation, led by a dynamic and motivated management team. Their strength, expertise and brand in the specialty and agency marketplace are highly complementary to the other GRP businesses and particularly to Ropner, which we acquired last year. Ropner has shown excellent growth in its core markets of marine, cargo and reinsurance. GRP’s investment in LONMAR, alongside Ropner, means that we are now among the largest independent Lloyd’s broking groups, covering a wide range of specialty areas that will be of benefit both to our existing clients and to our growing network of regional brokers We have a strong pipeline of opportunities and expect to announce further investments over the next few months”.
Peter Cullum, Chairman of Global Risk Partners, said: “This latest investment adds to the impressive list of transactions that we have completed since the formation of the Group at the end of 2013 and brings the run rate EBITDA in our businesses to over £10m. While still in its infancy, GRP now manages GWP in excess of £350m, with an ambition to see this grow to over £500m by the year end, making it one of the fastest growing businesses in the broking sector.”
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