Travel & General Insurance To Break New Ground In Construction Sector After Premium Buyout
Mobeus has invested £8.4m in the management buyout of Travel & General Insurance Services (T&G), a leading UK provider of financial protection insurance for the travel industry.
T&G is a specialist providing financial protection insurance (surety bonds) to the travel industry, and operates as a Managing General Agent vested with underwriting authority by Hiscox, which acts as the primary insurer. Following the buyout, Hiscox will also support the business’s ambition to move into other areas of surety, including bonds for construction projects, leveraging its strong reputation and skilled underwriting base.
The buyout of T&G sees Mobeus backing a strong management team, led by Richard Watson (MD) and Richard Tillett (underwriting director). Tillett has previously worked in construction underwriting at AmTrust and RSA, and has particular experience in opening up new vertical markets. Industry expert Christian Young will join as chairman from completion. He has held senior roles at the AA and Aon, and has non-exec experience.
As part of the transaction, £3m of senior debt was provided by Triple Point. Mobeus was advised by WK Corporate Finance (FDD), CIL (CDD), Mazars (exit review and file audit), Osborne Clarke (legals).
Chris Price led the deal for Mobeus, supported by Freddie Bacon, and will join the board. He said, “2018 has been a bumper year for insurance deals, this being the 30th in Europe over the last eight months. Mobeus has chosen to back T&G because of its superb long-term loss ratios and we are excited about its potential to build a similar-sized book to the core travel business in the construction sector.”
Richard Watson added, “We have a fantastic team assembled – and now the right backing in Mobeus – to really capitalise on the potential of the business and expand into other surety areas.”