Tokio Marine HCC International acquires Direct Commercial

Tokio Marine HCC International has signed a definitive agreement to acquire Direct Commercial Limited, a UK commercial motor MGA that writes more than £200 million in gross written premium.

Founded in 2002 and headquartered in Chelmsford, England, Direct Commercial distributes fleet, multi-vehicle and individual commercial-motor products through UK brokers. It employs more than 200 people and says it insures one in nine commercial trucks on UK roads. Its products are written on Great Lakes Insurance UK paper.

The deal also includes Direct Commercial Premium Finance. DCL will continue to operate under its existing brand, team and broker relationships.

“DCL brings us a leading specialist capability in UK fleet insurance, supported by strong underwriting discipline, claims capability and broker relationships. This acquisition is a natural extension of our specialty strategy and strengthens our ability to support clients and brokers in a technically demanding and fast-growing market. We share a strong client-focused, expertise-led culture. We are delighted to welcome Phil and his team to the TMHCCI family.” – Thibaud Hervy, Chief Executive Officer, TMHCCI.

The deal follows Admiral Group’s acquisition of Flock. Flock employs about 80 people and reported no employee growth over the past year, while DCL has about 160 employees and grew its workforce by 3%, according to LinkedIn.

Bottom Line: For Tokio Marine HCC International, the acquisition creates a new UK commercial-motor business line.