US equity firm buys 65% stake in owner of Abbey Insurance

THE parent company of Abbey Insurance is now under new ownership after a US equity firm completed a deal to acquire a majority share in the business.

Prestige Insurance Holdings, based in Carrickfergus, yesterday finalised the deal with Capital Z Partners Management.

Capital Z now has a controlling 65% stake in Prestige, although the existing management team is to remain in place.

Prestige employs around 519 people here and operates 21 branches of Abbey Insurance.

Financial statements for 2017 reveal group turnover of £43.7m and pre-tax profits of £1.6m.

Two years ago Abbey acquired Open and Direct Insurance Services, making it the biggest independent personal lines insurance brokerage in Northern Ireland.

Trevor Shaw, Prestige Insurance Holdings Group chief executive, said: “I am delighted to welcome Capital Z as our majority shareholders. They are long term partners who bring a great deal of knowledge of our sector,

Positive move: Trevor Shaw

along with funds for acquisitions and growth.

“This is a very positive move for our staff, customers and insurance suppliers.”

Jonathan Kelly, partner at Capital Z, said: “The Prestige Group represents a great insurance platform for us, having strong distribution, particularly in Northern Ireland, with niche underwriting positions in the home and car markets, together with its own IT platform.

“We look forward to working with Trevor Shaw and his team to help it fulfil its potential.”

As part of the deal, Prestige founder George Storey will retire as chairman although he will remain on the board as a non-executive director.

Phil Bunker, formerly managing director of LV Broker and an executive director of Churchill, joins as non-executive chairman.

Mr Storey said: “I am incredibly proud to have built a business over 45 years which has attracted such high quality investment from an investor which sees its strength and potential.

“I am confident to leave the group in the hands of a very capable management team and excellent staff.

“I look forward to supporting the new owners in a non-executive role in the future and I wish them every continuing success,” he added.

The deal has been approved by the Financial Conduct Authority and the Central Bank of Ireland. Capital Z is the latest US operator to enter the market here.

In 2011 Boston-based Liberty Mutual Group acquired Quinn Insurance and the US giant went on to buy Newtownards-based Hughes Insurance in 2014.