Cinven acquires 50% stake in Policy Expert

UK-based home and car insurance provider Policy Expert has secured new backing from international private equity firm Cinven to support its expansion plans and broader growth strategy.

Cinven’s Strategic Financials Fund has agreed to acquire a 50% interest in Policy Expert from its current owner, a wholly owned subsidiary of the Abu Dhabi Investment Authority. The financial details of the transaction have not been disclosed.

Policy Expert has been one of the UK’s fastest growing insurance businesses since it was founded in 2011. The company operates as a managing general agent and it currently serves more than 1.5 million customers.

The company reported a £33 million loss before tax for the year ended March 31, 2023. However, for the year ended March 31, 2021, the company reported a £14.5 million profit before tax.

Policy Expert plans to offer pet insurance this year.

“We are a forward-looking business that loves to get things done and we are hugely excited to have two supportive shareholders in Cinven and ADIA with us for the next stage of our journey. Every new policy sale or renewal adds to our belief that customers are seeking clear, consistent and dependable products and support from the general insurance market. Our smart use of data and people-focused culture has already made this a reality for our 1.5 million customers.” – Steve Hardy, Executive Chair of Policy Expert.

“We are delighted to invest alongside ADIA to support Policy Expert in its next stage of growth. Policy Expert is one of the fastest growing home insurance providers in the UK, with a unique approach to product design and claims management and a strong reputation for customer satisfaction. We have been highly impressed by the Company’s achievements to date with the business expanding significantly over the past few years. Cinven has extensive experience investing in the insurance sector and we look forward to leveraging this knowledge to support the management team to deliver continued growth across its product base.” – Luigi Sbrozzi, Partner and Head of the Strategic Financials Fund at Cinven.

“We are confident that Cinven’s track record of supporting innovative businesses will be of significant benefit to Policy Expert and we are pleased to welcome them as fellow shareholders in the company. Policy Expert is already one of the UK’s leading insurance providers and it has strong prospects for further growth.” – Hamad Shahwan Aldhaheri, Executive Director of the Private Equities Department at ADIA.