Markerstudy to acquire BGL’s insurance arm

UK motor insurance specialist Markerstudy Insurance is acquiring the insurance operations of BGL Group, in a deal worth £400 million according to a report by Sky News. The amount can reach £500 million if certain goals are achieved.

Markerstudy, which two years ago became the UK’s sixth-largest motor insurer with the acquisition of Co-op Insurance’s underwriting business, will double its size to nearly 6 million customers with this acquisition.

BGL’s insurance arm includes brands such as Budget Insurance and Dial Direct, and digital life insurance provider Beagle Street. The unit distributes policies for partners including M&S and the RAC, and also acts as the retail personal lines platform to other major brands, including the Co-op Group and Lloyds Banking Group’s home insurance products.

The bulk of BGL’s profit is made by Comparethemarket, which has become one of Britain’s biggest price comparison sites. The company had previously separated its price comparison and insurance operations.

“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.” – Kevin Spencer, group chief executive of Markerstudy.