Peterborough’s BGL Group is broken up with £400 million sale of its insurance business
The Peterborough-based BGL Group has been broken up with its insurance business sold in a £400 million deal.
BGL Insurance, (BGLi) employing about 1,000 people at its centre in Bretton, has been acquired by the Kent-headquartered Markerstudy.
The deal has been reported as being worth about £400 million.
The acquisition is subject to regulatory approval and is expected to complete during the next six months.
It is understood staff were told about the acquisition on New Year’s Eve.
The sales leaves the BGL Group in Peterborough with only its ComparetheMarket business, which has about 700 staff at its offices in Bakewell Road, Orton Southgate.
Kevin Spencer, group chief executive of Markerstudy, said “As a leading distributor in the market, taking ownership of BGLi provides us with a unique opportunity to further accelerate and increase our growth potential.
“We have enjoyed a long and fruitful partnership with BGL Group, and this has strengthened in recent years with BGLi acting as an outsource partner to a number of Markerstudy brands.
“This is a fantastic springboard into 2022.”
Peter Thompson, chief executive of BGL Insurance, said: “We are excited to become part of the Markerstudy Group.
“The partnership is a natural evolution for BGLi and brings together our leading digital distribution capabilities with the innovative underwriting capabilities of Markerstudy.
“The combination creates a business with close to 6 million customers and our complementary skills will enhance our customer proposition.”
The division of the BGL Group into its insurance and ComparetheMarket businesses was fist revealed several months ago when the company announced a major restructuring and the loss of about 116 jobs.
It is understood that BGLi will continue to trade under its current name following the sale to Markerstudy, which includes among its non-executive directors Matthew Donaldson, the former chief executive of the BGL Group until his retirment last June.
Markerstudy was advised during the aquisition by KBW, Slaughter and May, and Oliver Wyman. BGL Group was advised by Fenchurch Advisory Partners and Dentons.